Speaker A
hello everyone and welcome back to our next lesson which is dealing ranges but more specifically multi-timeframe operation so we've laid the framework with IPA and how to find our IPA look back targets when we can expect those to
Multi-timeframe ICT lesson on dealing ranges: top-down range identification (weekly to 1H), invalidation levels, and bottom-up confirmation for multi-timeframe operation.
Key Takeaways
- Use a top-down approach to identify dealing ranges from weekly down to 1H, then a bottom-up approach to test which higher-timeframe ranges price should be delivered to.
- The dealing range low (for bullish bias) or high (for bearish bias) serves as the invalidation level, because the liquidity at that extreme has already been swept.
- Lower-timeframe premium or discount key reference points either support or reject price, determining whether to expect a return to higher-timeframe ranges.
- Combining dealing ranges with IPA look-back targets creates a framework for forecasting price direction across multiple timeframes.
What the video covers
- The lesson continues the ICT framework by introducing dealing ranges and how to operate across multiple timeframes, focusing on the 1H, 4H, daily, and weekly charts.
- The algorithm is described as cycling from higher to lower timeframes and back, seeking to complete objectives across the ranges.
- Dealing ranges are identified using a top-down approach, starting with the weekly range and moving down through daily, 4H, and 1H ranges; monthly ranges are used less often.
- Key reference points within premium and discount zones of each range are identified, including fair value gaps, order blocks, volume imbalances, quadrants, and mean thresholds.
- The invalidation level for a bullish bias is the dealing range low, and for a bearish bias it is the dealing range high, since liquidity has already been swept there.
- A bottom-up approach determines whether lower-timeframe discount (bullish) or premium (bearish) key reference points support price, indicating whether higher-timeframe ranges will be delivered to.
- If lower-timeframe reference points fail to support price, the analysis expects a return to higher-timeframe discount or premium, signaling weakness or strength contrary to expectations.
- If lower-timeframe reference points hold, the analysis assumes higher-timeframe ranges will not be revisited and that price is strong or weak in the expected direction.
- Combining dealing ranges with IPA (interbank price action) look-back targets (20, 40, 60 day) helps set daily bias and identify where price is likely to head.
- Chart examples demonstrate applying the framework to weekly, daily, and hourly ranges, refining the dealing range high or low as new swings form until look-back targets are met.
Chapters
- 00:00Introduction to Dealing Ranges and Multi-Timeframe Operation
- 01:27The Algorithm's Top-Down Filtering Cycle
- 02:42Identifying Dealing Ranges with a Top-Down Approach
- 03:53Key Reference Points in Premium and Discount
- 05:10Setting Invalidation Levels
- 06:29Bottom-Up Operation and Supporting Lower-Timeframe Ranges
- 07:57Bearish Scenario and Premium Reference Points
- 09:01Chart Examples and Combining with IPA Look-Back Targets
- 11:18Refining Ranges and Continuing the Cycle
Full Transcript — Download SRT & Markdown
Speaker A
be delivered to now the next piece of the puzzle is ident ifying dealing ranges and understanding how to operate within multiple different time frames so to really understand what the algorithm is doing what the algorithm is operating in in terms of a range we're
Speaker A
going to be focusing on the 1H hour time frame and higher so as you can see here the 1 hour the 4 Hour the daily the weekly and the monthly those are the time frames we're going to be spending
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most of our time on when looking for dealing ranges and understanding where we are in the range what we can expect to be delivered to in the range what we shouldn't expect to be delivered to in the range so on and so
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forth so these are the time frames that we're going to utilize when identifying our dealing ranges so obviously if we're looking at multiple different time frames then we're going to be looking at multiple dealing ranges okay so the algorithm is
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always in a cycle filtering from higher time frame to lower time frame back to higher time frame back to lower time frame trying to understand what objectives need to be completed so this is why we need to be aware of our
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monthly dealing ranges all the way down to our hourly dealing ranges and the problem that most people have with multiple dealing ranges is okay which time frame do I use how do I know let's say we're bullish how do I know if price
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is going to return to Discount of an hourly range or if it's going to return to a discount of the 4H hour or daily range that is the main focus in this lesson we are going to look at how we
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can understand which dealing ranges we should expect price to deliver to in terms of discount if we stick with the bullish idea in which dealing ranges we don't expect a return to a discount and once we start to understand this it is a
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really really powerful tool with daily bias institutional order flow everything we discussed in IPA and it really starts to bring a framework together on where price is going now in terms of the steps we take to identify our dealing ranges
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we're going to use a top- down approach and you can see here I have number one as the weekly range then we look for the daily range in the 4 Hour in the 1 hour leaving out the monthly um the reason
Speaker A
for this is that we simply just won't be utilizing monthly dealing ranges or monthly PD arrays as often as these time frames that you see right here so if we do see a monthly dealing range and it's beneficial to us in our bias of course
Speaker A
we'll use it but more often we're going to be using these four time frames to locate our dealing ranges so step two is to locate our key reference points in a premium and a discount of each dealing range so we start with the weekly and we
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say okay these are our key reference points in a premium of our weekly dealing range and our key reference points in a discount of our weekly dealing range then we go to the Daily dealing range and of course all the way
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down to the 1-hour dealing ranges just to start to build the framework and understand what price could deliver to now I won't spend too much time on this because you guys already have all this information in your key reference point
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guide but we'll just be looking for things like fair value Gap highs lows quadrants volume imbalance is high low CE order Block open low mean threshold breaker open low mean threshold Wick quadrants and of course everything else in that key reference point guide but
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these are the levels that we want to identify inside of our dealing ranges so after we've identified our dealing ranges on each time frame and the key reference points that reside in a premium and a discount of those dealing
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ranges we need an invalidation level to say okay if this gets broken I am wrong I need to reassess my analysis and we will have ways to refine this as we go along but the main rule of thumb is as
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you see here if we are bearish the dealing range high is the invalidation level if we are bullish the dealing range low is our invalidation level because think to form a dealing range to identify a dealing range on either side
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of that range there's a liquidity sweep so let's say we're bearish why would our dealing Range High be our invalidation level plain and simple we've already had a liquidity sweep up there so if we're expecting lower prices we don't want to
Speaker A
see price go back up there again because stop losses at the dealing Range High have already been purged and vice versa for dealing range lows if price comes down to sweep sell-side liquidity and we form a swing low which would be of
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course our dealing range low that would be our invalidation level because as long as our bullish analysis is correct there should be no reason for the algorithm to go back down there to our dealing range low since it's already
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swept sell-side liquidity now what you see here is going to be the foundation for understanding which dealing ranges we can expect price to deliver to so when we were identifying our dealing ranges we used a top down approach right we went from the
Speaker A
weekly to the Daily to the 4H hour to the 1 hour when under understanding how to operate with multiple dealing ranges we need to use a bottom up approach so as you can see here with this yes no statement the main question
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we want to ask ourselves is is the lower time frame dealing range discount supporting price let's say we're bullish here is that lower time frame dealing range discount key reference points supporting price so the lower time frame remember we only go down to an hourly
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time frame frame is that hourly dealing range supporting price if no we're going to assume that we're going to return to a discount of the higher timef frame dealing range in other words if we start to see signatures which we'll discuss of
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the hourly discount key reference points failing to support price we're going to assume that the algorithm needs to reach down to a discount of the 4-Hour dealing range in other words price would be weak price would be weaker than we thought it
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was on the other hand if the hourly dealing range discount key reference points are showing signatures that it is supporting price then we're going to assume that we won't return to a discount of the higher time frame dealing range discount so again that
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would be if the hourly discount key reference points support price we're assuming that we're not returning to a discount of the 4-Hour dealing range the daily dealing range the weekly dealing range and that all those PD arrays in
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those higher time frame dealing ranges should be Breakaway gaps and using that logic we would be internalizing that price and the market is strong and we should expect higher prices in that our analysis is correct so as long as the
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lower time frame dealing range is supporting price when we are bullish expect the higher time frame dealing ranges to not be delivered to so I won't spend too much time on this now because we're just flipping the previously discussed scenario for when
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we are bearish but of course we're using the same logic so if we have our hourly dealing range are the key reference points in a premium of that hourly dealing range rejecting price or acting as resistance pushing price lower if no
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then we're going to assume that we're going to return to a premium of the higher time frame or or 4-Hour dealing range that would mean that we are stronger than we thought we were and we have to zoom out to those higher time
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frame dealing ranges if those key reference points in a premium of the 1hour dealing range do in fact act as resistance and push price down like we want to see because we are bearish then we're going to assume that we're not
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going to return to a premium of the higher time frame dealing ranges and that any P rays that have not been delivered to in those higher time frame premium dealing ranges should be Breakaway gaps and that's what we would
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want to see best case scenario if we were bearish because that would mean that we're heavy price is weak we should expect lower prices so now let's get into some chart examples as you can see here we're looking at 's weekly dealing
Speaker A
range so we have this dealing range low and this dealing Range High from when we were in sell-side delivery here okay but obviously we can see price was very very strong and attacked this dealing Range High now this whole move up was there a swing
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high that formed on the weekly chart to identify a dealing range from this low to that hypothetical high no was there any retracement in return to what would be a discount just looking at the weekly time frame before we got to this dealing
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Range High this buy side Target no does that mean we can't trade and can't find ways to trade of course not so let's look further so going down to the daily chart now on ES we see more of the same
Speaker A
looking at this chart targeting this buy side liquidity was there any return to a discount while we moved up and got that buy side no price was super strong and there was no retracement again does that mean that we
Speaker A
can't trade any of this move no it just means we continue to go down to the 4our in the 1H hour identify our dealing ranges and see what is occurring down within those dealing ranges so before we get down to the 4H
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hour and the one hour to look at what was occurring we can see here that we did in fact create a swing low and this swing high before this continuation to the upside here when this swing high was
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formed why didn't we return to a discount here if we were waiting for this return to Discount we would have missed the move if we were only looking at the daily chart so we need to like previously mentioned go down to the 4H
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hour and 1 hour charts and see again if we start to combine some Concepts from our previous lesson how we got to the 40-day IPA look back Target how we got to the 60-day IPA look back Target and
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then extended through to this buy side liquidity and now we are on the 4our chart so first off from the previous lesson on IPA this was our daily Market structure shift which set the tone for us to expect buy side delivery so with
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IPA it allows us to set our bias what direction is institutional order flow operating in where can we expect the drawn liquidity those are the 20 40 and 60 if to look back targets as we can see here after identifying our bias we need
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to look for ways that we can get involved and that's where dealing ranges come in but still we're looking at the 4-Hour chart and price is extremely strong so we have CPI release Here Right which sends us bananas to the upside and
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then we consolidate and we deliver to this 40-day IPA look back Target but just like the weekly and the daily charts why didn't we return to Discount of this dealing range why didn't we return to this large fair value Gap here
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we just need to continue to go investigate and see what is occurring on the 1eh hour chart so if we're looking at this hourly chart we have our sell side swept we have our buy side swept so we have our
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dealing range low and our dealing Range High now in the upper right hand corner here that is our if then yes no statement that we look for when looking at these dealing ranges on multiple time frames so originally after identifying
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this hourly deal dealing range our invalidation level is the dealing range low our key reference points in a discount of this dealing range are this fair value Gap right at equilibrium this order Block's opening price and mean threshold of this order block so as long
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as those discount key reference points support price and we don't Purge this dealing range low what did we discuss earlier looking at this yes no statement as long as the lower time frame dealing range discount key reference points support price we're
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assuming that we won't return to a discount of the higher time frame dealing ranges so is this supporting price yes now it's easy to say that hindsight but that's where the signatures come in that's where we look for those algorithmic signatures what
Speaker A
the bodies are telling us to understand if price is truly respecting these discount key reference points so what signatures do we see here price is coming back down to a discount and it's wicking in to the tick precisely exactly
Speaker A
mean threshold of this order block so the Wicks are doing the damage but we're aware that we're just delivering down to this hourly key reference point on top of that we've already had a stop raid down here sell side is already swept
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that's why our dealing range low is our invalidation level so as long as these hourly discount key reference points offer support for the algorithm we're going to expect the 4H hour the daily the weekly the monthly dealing ranges
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not to be returned to after we Wick in to mean threshold of this order block what are the bodies telling us is it respecting this fair value Gap yes so the Wick's doing the damage into a key reference point but the bodies are
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telling us time and time again that it is respecting this discount level the discount of this hourly dealing range so as long as that remains true it is telling us that the market is strong because it doesn't even want to return
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to a discount of the 4H hour or the daily dealing range all it's doing is working within this hourly dealing ranges and those algorithmic signatures within the dealing ranges tell us if the market is strong or weak and of course
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we can see that eventually we do beautifully expand higher and get that 40-day IA look back Target so everything we discussed here with this dealing range we're not just buying and hoping that it continues to go up we have
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logical targets that we discussed in our previous lesson on IPA so once you combine dealing ranges with IPA it's really really powerful in terms of a combination to understand where price is heading on these higher time frames so of course we expand and get
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that 40-day I tolook back Target but we still haven't met our 60-day I toook back Target so whenever we have expansion we're going to have new dealing ranges to work with especially on the hour hourly and 4H hour time
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frames so we want to make sure we're still identifying those dealing ranges on the hourly and 4H hour time frames so we can see kind of that they're more Dynamic ranges as we continue to move higher to our IPA look back targets now
Speaker A
remember our invalidation level is our dealing range low if we think on the opposite end of that if we're bullish and our invalidation levels are not hit we expect the dealing Range High to fail in other words this can be a Target when
Speaker A
we're bullish we want to Target dealing range highs as partials until we meet our major buy side objective which is of course our 60-day ifp toook back Target so after we create this new 4our Range we just repeat the same process as we
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did before from this low to this High where's equilibrium it's right here what key reference points are we working within this discount well first and foremost we can see right here on my cursor we dug in beautifully the mean
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threshold of this bullish order block expanded higher created the swing high and we're working look at the Wicks here we're wicking below it but look at the bodies closing above equilibrium of this dealing range those are the signatures
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that you look for on top of that where are we wicking down into 50% of this 4H hour Wick after this immediate rebounds here and this immediate rebounds can be for you to study so look from let's say
Speaker A
December 16 to December 23rd and you'll see this price action on the 4our chart and investigate this immediate rebalance here and see what occurred after we delivered to this Wick High exactly I may add on the lower time frames and
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guys we just continue this process over and over and over again so we're still on the 4-Hour dealing Range High and this buy side being swept here with this High that's what we just covered on the previous slide
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okay so all we're doing is refining our dealing Range High because we still haven't met our 60-day look back Target all right same process after we have this swing High formed we just identify equilibrium of the range in our discount
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key reference points so we have this fair value Gap here you would look at the quadrants you have this order block here you would look at the open what else mean threshold and the low what is occurring we're working this order block
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over and over again this right here is your algorithmic signature we Wick below but look at the bodies close and open right at mean threshold of this bullish order block these are the signatures you want to see until you meet your buy side
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objectives which of course is our 60-day ifp toook back Target so I hope you guys can start to see we're just repeating this process over and over and over again with real logic and to reiterate as long as this 4-Hour dealing range
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supports price we're assuming that we're not returning lower to our daily dealing range or our weekly dealing range discount levels and we can really start to gauge true strength in the market by just understanding dealing ranges and algorithmic
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signatures so zooming back out to the daily chart after everything we just discussed on our way up to get this 60-day look back do we just automatically reverse and look for lower prices no we still continue to operate
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within those lower time frame dealing ranges as long as those lower time frame dealing ranges continue to support price we should expect that we're going to continue higher through this 60-day look back buy side Target if we're going to
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assume that we're going to continue higher where would we target buy side liquidity here and to bring it all together we get get that 60-day look back Target so this is our refined dealing Range High we're obviously in
Speaker A
consolidation here but are we seeing respect of a discount of this dealing range yes we just continue to work this order block over and over and over again so as long as that occurs we continue to expect higher prices and eventually of
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course reach that daily buy side liquidity okay guys so that's going of do it on our lesson on dealing ranges and how to operate within them with multiple time frames now this next lesson dropping next Friday at 3 p.m.
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eastern Time is on change in the state of delivery and macro signatures now if you've watched the majority of the videos on this channel and are just familiar with how I read price action this is going to be the most informative
Speaker A
most beneficial and flat out best video that I've released on my channel yet so I'm super excited to release this to every one and I will see you guys next Friday
Topics:ICTdealing rangesmulti-timeframe analysispremium and discountinvalidation levelIPAorder blocksfair value gapliquidity sweepprice action
