Source: https://sozai.app/transcript/youtube-video-transcript-236/ A concise tutorial on ICT trading concepts, focusing on price action, liquidity pools, order blocks, and practical Forex trading strategies. ## Key Takeaways - Focus on understanding liquidity pools and institutional order flow rather than retail indicators. - Use demo trading extensively to practice and internalize ICT concepts before live trading. - Price action is fractal; patterns like double tops and bottoms appear across all timeframes. - Avoid common retail trading distractions and adopt a mindset that anticipates where orders rest. - Scaling profits and managing drawdown are critical for long-term trading success. ## What the video covers - Introduction to a new series of ICT tutorials designed to be concise and user-friendly. - Overview of key ICT trading concepts including liquidity raids, stop runs, and liquidity pools. - Explanation of how to locate high probability liquidity pools and use ICT order blocks for high accuracy entries. - Discussion on low drawdown entry tactics and high probability targeting for Forex trading. - Emphasis on the benefits of scaling profits and making money during liquidity raids or stop runs. - Insight into the fast-paced and opportunity-rich Forex market, suitable for various trading styles. - Highlighting common pitfalls new traders face and the importance of demo trading before live accounts. - Critique of retail trading methods and patterns, encouraging a mindset focused on institutional order flow. - Teaching the fractal nature of price action and the significance of double tops and double bottoms across timeframes. - Encouragement to study price action phenomena for a month on demo accounts to build understanding. ## Chapters 1. 00:00 Introduction and Tutorial Goals 2. 02:56 Overview of ICT Concepts and Practical Application 3. 04:36 Personal Trading Experience and Common Pitfalls 4. 06:14 Essential Elements of Price Action 5. 07:53 Price Reference Points and Time Factor 6. 09:28 Fractal Nature of Price and Pattern Recognition 7. 10:58 Importance of Demo Trading and Mindset Shift 8. 12:30 Institutional Order Flow and Trading Psychology 9. 17:00 Trade Examples and Targeting Techniques 10. 19:00 Scaling Profits and Managing Stop Losses Answers ## Questions about this video What are the main ICT concepts covered in this tutorial? The tutorial covers liquidity raids, stop runs, liquidity pools, ICT order blocks, high accuracy entry points, low drawdown tactics, high probability targeting, and scaling profits. Why is demo trading emphasized in this video? Demo trading is emphasized as the best way to practice and internalize the ICT concepts without risking real money, allowing traders to build experience and avoid common pitfalls. How does the video suggest traders should view price action? Traders are encouraged to see price action as fractal, meaning patterns like double tops and bottoms repeat across all timeframes, and to focus on institutional order flow rather than retail indicators. ## Full Transcript — Download SRT & Markdown 00:13 Speaker A [Laughter] [Music] Hello folks, welcome back. All right, so we're embarking on a new journey for some of you, and for those who have gone through my old vintage ICT tutorials, these will probably be a little bit more user-friendly and concise. I did have the aim and goal in mind to make them as short, concise, and dense as possible with content, but still not be so long in a time window. I want the durations to be a little bit more manageable, so that was the goal for 01:07 Speaker A aim and goal in mind to make them as short concise is dense as possible with content but still not be so long in a time window I want the durations to be a little bit more manageable so that was the goal for 01:25 Speaker A this round of tutorials. We're gonna be talking about what new traders should study and practice. Okay, so what's gonna be covered in this module? Okay, the ICT concepts used in this one: there's gonna be the theory of liquidity 01:49 Speaker A raids or stop runs introduction to liquidity pools how to locate high probability liquidity pools introduction of the ICT order block high accuracy entry points low drawdown entry tactics high probability targeting the benefits of scaling profits and how to make money when you 02:26 Speaker A raids or stop runs, introduction to liquidity pools, how to locate high probability liquidity pools, introduction of the ICT order block, high accuracy entry points, low drawdown entry tactics, high probability targeting, the benefits of scaling profits, and how to make money when you 02:45 Speaker A the marketplace especially with Forex because it's so exciting it's fast paced it's it's a wonderful mark it's a beautiful market it gives plenty of opportunities you can be day trading it you can scalp it you can position trade 02:56 Speaker A are wrong. All these concepts and ideas are going to be used in practical application, but before we show you that, it's important to begin with an overview. Okay, so when we look at price action as a new trader, you're going to come into 03:14 Speaker A of things I should have been doing and what's worse is I was an experienced trader from other asset classes stocks bonds commodities and I did trade the currency markets by way of the futures market so you would think having a 03:29 Speaker A the marketplace, especially with Forex, because it's so exciting, it's fast-paced, it's a wonderful market, it's a beautiful market, it gives plenty of opportunities. You can be day trading it, you can scalp it, you can position trade 03:45 Speaker A around very liquid and it was like a it's like a candy store for me so I did a lot of things wrong and I've learned over the years and these videos are gonna help you avoid a lot of those 03:59 Speaker A it, you can swing trade it. It's absolutely phenomenal. I love it. To me, it's the best asset class today. However, like you, when I first got engaged in the study of price action for Forex, I quickly found myself doing a lot 04:17 Speaker A actually added advantage okay folks that have gone through trading courses and material are going to have some hardships with this not just with this teaching but all of the ones I'm going to be teaching the constant theme is I 04:36 Speaker A of things I should not have been doing, and what's worse is I was an experienced trader from other asset classes: stocks, bonds, commodities, and I did trade the currency markets by way of the futures market. So you would think having a 05:00 Speaker A open high low and close okay there's four reference points that make up price and we make charts based on those four reference points now we have an element of time that's a factor that won't be talked about in this module but I will 05:14 Speaker A decade or more really of experience before getting involved in the foreign exchange market that I would have had a little bit better grasp on my emotions and my excitement, but that didn't happen because it's a 24-hour market, it moved 05:31 Speaker A look at it and maybe some things jump off maybe other things aren't so apparent or obvious to you but I want to kind of change your perspective on price action and I want you to focus in on areas in price action it doesn't make a 05:47 Speaker A around very liquidly, and it was like a candy store for me. So I did a lot of things wrong, and I've learned over the years, and these videos are gonna help you avoid a lot of those 06:02 Speaker A itself okay the same type of formation or setup can be seen on every time frame so when we look at price or how I teach my students to look at price I want them to first understand what makes the 06:14 Speaker A pitfalls. So we're gonna cover an element of price action that I think is essential, and if you have no previous trading experience, if you've not opted your mind with the retail stuff that is promoted in the industry, you're 06:29 Speaker A not going to do well on a live account everything that I'm teaching here should be done in the medium of a demo all of my teaching is done in a demo and that's just the best way to do it play in the 06:43 Speaker A actually at an advantage. Okay, folks that have gone through trading courses and material are going to have some hardships with this, not just with this teaching but all of the ones I'm going to be teaching. The constant theme is I 06:58 Speaker A I want you to think where every one else's trade idea would fail them now think about that because when you read books they tell you buy here sell here your stops here try to aim for this target ok so they're geared towards 07:18 Speaker A want you to think about the marketplace completely opposite to what retail teaches. So retail is like Elliott Wave, supply and demand, harmonic patterns, animal patterns, all these things that you put on your charts. They're all distractions. All you need to know is the 07:38 Speaker A something so simple but it evades most traders even traders that have been trading for a long period of time if you look at periods in price action where there are equal highs and equal lows this is the easiest most obvious price 07:53 Speaker A open, high, low, and close. Okay, there's four reference points that make up price, and we make charts based on those four reference points. Now, we have an element of time that's a factor that won't be talked about in this module, but I will 08:10 Speaker A higher or lower it doesn't make a difference if it's exactly or if it's off by one or two pips the general theme is if it looks close enough then it's a double top or a double bottom now retail 08:25 Speaker A talk about it in coming lessons. But I want you to think about when, for instance, we're looking at this chart here. Now, this happens to be the day of this recording's Eurodollar. Okay, it's a 15-minute time frame, and I want you to 08:40 Speaker A equal lows traders cell stops so the way institutional mindset is poised about looking at price action they're looking for counterparties they're looking for the opposite side of their trade so when everyone else is in the retail world looking for indicators to give them buy 09:02 Speaker A look at it, and maybe some things jump off, maybe other things aren't so apparent or obvious to you, but I want to kind of change your perspective on price action, and I want you to focus in on areas in price action. It doesn't make a 09:16 Speaker A content this is the only one I'm going to teach and it's a very simple one in literally a five-year-old can see it in the chart so anytime you see a double bottom or a double top put a small 09:28 Speaker A difference what time frame you look at, okay, because price is fractal, meaning that the things that you can see on one time frame, they can be seen on the lower time frame or the higher time frame as well. So it's a phenomenon; it repeats 09:44 Speaker A not demo trade do not try to pick the direction I want you to study it for one full month do nothing else pick one or two pairs literally go through and watch how many times this phenomenon takes place you can look at it on any 10:01 Speaker A itself. Okay, the same type of formation or setup can be seen on every time frame. So when we look at price or how I teach my students to look at price, I want them to first understand what makes the 10:14 Speaker A sold short the euro dollar okay both pairs generally do not move in the same direction but I knew there was a strong likelihood that the dollar cad would sell off aggressively and therefore any movement down in the euro dollar would 10:29 Speaker A markets move. Okay, without understanding that, your probabilities of being successful in developing yourself in a demo trade is highly unlikely, and you must forget about becoming a live funded trader if you can't do well in a demo. You're 10:41 Speaker A area rate in here okay we have equal lows and price has already went above an old high and broke down and it's found an area of consolidation and this is the very consolidation that I taught you how to 10:58 Speaker A not going to do well on a live account. Everything that I'm teaching here should be done in the medium of a demo. All of my teaching is done in a demo, and that's just the best way to do it. Play in the 11:15 Speaker A there's equal lows here and I like to look at old lows and old highs and project 10 to 20 pips beyond those double bottoms and double tops so in this double bottom folks see that as support price comes down hits it here 11:33 Speaker A sandbox. It's risk-free, and you learn to develop good habits this way. So what do you do with a demo account? Well, before you even put on trades, I think that you should be studying price action like this. Okay, 11:45 Speaker A getting ready to sink and go lower and attack the sell stops that are below the market place here for those traders that have been fortunate enough to be long in all this movement Road up to this high but still did not take profits and have 11:59 Speaker A I want you to think where everyone else's trade idea would fail them. Now think about that, because when you read books, they tell you buy here, sell here, your stops here, try to aim for this target. Okay, so they're geared towards 12:14 Speaker A itself you need to be determining whether or not that's a trade that's viable for you so what's a viable trade I teach that my students as a new trader should think about 20 to 30 pips per week to start and that's a very very low 12:30 Speaker A getting you into a move, and the stop losses are pretty generic: below an old low, above an old high. I have started a new wave of free membership followers online, and they have shared their enthusiasm with the discovery of 12:42 Speaker A a week the problem is gonna be your ability to refrain from trading once you get it in your demo account you should exercise patience and not do any more weight to the next week because this teaches two important and crucial 12:56 Speaker A something so simple but it evades most traders, even traders that have been trading for a long period of time. If you look at periods in price action where there are equal highs and equal lows, this is the easiest, most obvious price 13:06 Speaker A something with it there's nothing wrong with paper trading it in other words making notations and saying okay I would hypothetically do this and hypothetically do that but when you practice practice with a demo account doing one execution manage it to get 20 13:20 Speaker A point to see in charts. Every time you see that, I want you to note that. Okay, put a small little trendline horizontal. Okay, and that's the only type of trendline I like. We're delineating previous points where it made equal highs or slightly 13:34 Speaker A thing over again while your hands hot play it hard that's this foolish we're not gambling we're looking for high probability scenarios and setups so we have to understand what that is so in in addition to and a compliment to the high 13:50 Speaker A higher or lower. It doesn't make a difference if it's exactly or if it's off by one or two pips. The general theme is if it looks close enough, then it's a double top or a double bottom. Now retail 14:10 Speaker A and below old lows so if we see double toss and double bottoms our charts should be noted like this notice there is an absence of any kind of indicator except for now the application of a Fibonacci the Fibonacci is what I taught 14:26 Speaker A circles will teach that these are good areas to trade off of as support and resistance. Institutional-minded traders think entirely different. They know what's sitting above: there are equal highs, it's traders' buy stops, and they know what's residing below the 14:45 Speaker A have several opportunities to get short at the sixty two percent tradesmen level now finally expanded down hit the first skilling objective which is the old low seam here then target one is hit target two is hit and then the symmetrical 15:01 Speaker A equal lows: traders' sell stops. So the way the institutional mindset is poised about looking at price action, they're looking for counterparties, they're looking for the opposite side of their trade. So when everyone else is in the retail world looking for indicators to give them buy 15:18 Speaker A is going to have trail on their by positions ringing their cell stops up so the markets going to come back and grab those orders the market does in fact collect all the cell stops and then look at the nice vault higher 15:35 Speaker A and sell points, institutions are actually thinking, where are the orders resting right now? In the easiest way I have learned to teach traders to start with—and there's other ways to do this—but as far as I'm gonna go in the free 15:51 Speaker A here okay they have been taken out they can't capitalize on anything going higher but what happens if you don't have the classic ICT optimal trade entry on your chart so you miss it what do you do well if you don't get into that 16:08 Speaker A content, this is the only one I'm going to teach, and it's a very simple one. Literally, a five-year-old can see it in the chart. So anytime you see a double bottom or a double top, put a small 16:25 Speaker A individuals that aren't really interested in learning from me they they're quick to point and say well that's chasing price and you're gonna see just because we're not entering at the 60 to the 700 tradesman level and we're getting in somewhere down in here 16:38 Speaker A little segment or a line above it or below it, delineating it, and put a notation what it is. Above double tops on your chart, make a small little notation that it's buy stops, and below equal lows, sell stops. And I want you to study. Do 16:52 Speaker A this is where you should get in it the problem is over the years I've been inundated with emails stating that folks don't have the courage to get in and they want to get in but many times they are too afraid to chase price because 17:04 Speaker A not demo trade. Do not try to pick the direction. I want you to study it for one full month. Do nothing else. Pick one or two pairs, literally go through and watch how many times this phenomenon takes place. You can look at it on any 17:15 Speaker A targets would be to be able to see a profit okay so what do we do well we can focus in above that low in this area right in here I'm gonna take you right into that area with a little bit more 17:30 Speaker A time frame, but I think a 15-minute time frame is ideal because you'll see a lot of scenarios to pan out. Now I traded two markets today at the time of this recording. I sold short the Dollar CAD and also sold 17:48 Speaker A now every up close candle and every down close candle does not make a order block okay there has to be a context or a storyline behind why the price should be doing what you anticipate it doing in this case we think that the cell stops 18:05 Speaker A short the Eurodollar. Okay, both pairs generally do not move in the same direction, but I knew there was a strong likelihood that the Dollar CAD would sell off aggressively, and therefore any movement down in the Eurodollar would 18:23 Speaker A here price actually returns back to the bearish order block low okay now what's the low of this candle right here price is returning back to it rate the time of this candle is closed it hits that low at that time that's a low risk entry 18:39 Speaker A be a suspect decline, and it would be reaching for sell stops. So that's gonna be the context behind what you see me do later on in this video. That was a recorded trade. So as we're looking at price, I want you to take a look at this 18:53 Speaker A now if the short is valid this up close candle will hold price below it until the targets are reached on this case the sell stops that we'd be talking below the equal lows now notice also in here as long as price is still above this low 19:14 Speaker A area right in here. Okay, we have equal lows and price. 19:29 Speaker A about this formation right here this candle already starts moving lower it went down to this point here and then started trading back up higher at that moment while you're watching price right in here that's when you time your entry 19:44 Speaker A notice that the candles retracing right back to the ICT bearish order blocks low that's this up close candles low that is exactly when your entries made at the market institutional traders will short during up moves now when price returns 20:05 Speaker A back to these up close candles we can be shorting it as well alright so now back to our example here if we see that we can find levels that have double tops and double bottoms in the market we'll 20:23 Speaker A want to go through them once this occurs chances are the markets going to go the opposite direction until it reaches another area of liquidity so the markets always gyrating back and forth back and forth seeking liquidity above the marketplace 20:37 Speaker A and below the market place below these equal lows there's a specific range that I look for it's 10 to 20 pips sometimes it can be as much as 30 pips but I give a working range of 10 to 20 pips so 20:51 Speaker A there's only two levels I'm looking for it's not a zone exactly 20 pips below that low at 118 84 it's one 1864 okay really simple specific price levels not zones not ambiguous areas to try to figure out what's going on it's exact 21:09 Speaker A it's a science we know exactly what we're looking for but the problem is what if we are expecting to sell short at that bearish order block at the low when it reads back to it does this offer potential for us to take a well we have 21:26 Speaker A an anticipated entry price at one 1891 we have an anticipated 20 pip sell stop raid price at one 1864 so no words we're anticipating getting in at one 1891 up here which is the low of this up close candle and we already 21:44 Speaker A know 20 pips below these lows the lowest of the to equal lows is what I use 20s below that that gives us a range low of 1 1864 so now we have 2 price points to determine whether there's enough of a 21:57 Speaker A range to make profit you take to these two numbers and you - them 91 from 64 gives us 27 pips so we have anticipated range for profitable movement of 27 pips that is enough to take the scalp now 22:17 Speaker A what I want you to do is I want you to watch me use everything that's used here because this is what was going on in my mind before I actually executed and why I took the trade okay folks we're gonna 22:33 Speaker A be doing a short and I'm waiting for the trade right back to the bottom of this candle here set the traits to 1 1891 also short not in a hurry if it takes off without me that's fine but I'm 22:56 Speaker A trading the bear shoulder block in here all right folks so I'll be looking for that price at 118 91 as soon as it hits it at market I will go short now my stop has to be above the up close candle or 23:15 Speaker A bearish order block but because of a spread in this demo account it forces you to be 10 pips away so I'm just gonna elect to go with one 19154 my stop okay it's about there i fingers on the 23:33 Speaker A trigger I'll have to do boom okay now I'm short my stop is just below one 1915 and I'm focusing my attention right below these equal lows because I want to see a sell stop raid so I'm gonna put my 23:51 Speaker A delineation somewhere that would be in terms of targeting and just in case I had my limit order lower down to here okay so if it goes down to that low and it's not a stop run I have a limit order 24:05 Speaker A to catch any accelerated price movement but I'm really targeting that 20 pip run so I have three Lots short I'm watching price I want to see it trade below that short term low we're flirting with and then have a range expansion below there 24:22 Speaker A so this recording is actually sped up for time purposes but right now we're retesting the bodies of the candles in the previous short-term low and now I'm gonna be looking for expansion on the downside and it'll reach 10 pips and 24:36 Speaker A hopefully 20 pips it's about two minutes late from 8:30 New York time usually it's a big volume increase for volatility and I'm setting my order up to collapse two of the three standard Lots that I'm short on Europe and I'm watching waiting 24:53 Speaker A to see if price gets down to that second level or 20 pips okay it's already showing 10 pips up the decline as soon as it hits that lower level line I'm gonna collapse two of them there you go 25:06 Speaker A and move my stop down to +1 now I'm in a situation where I don't really care but look at the entry points zero heat no drawl down on that entry no drawl down whatsoever it was not chasing price 25:20 Speaker A so I have two of the three standard Lots banked and now I'm watching price later on and I'm gonna be looking to lower to stop-loss and I may get lucky here and see a run down to that limit order but 25:38 Speaker A always keeping in mind that it started to trade with the context of it being just a stop run one sell stops so I want to be mindful of how much the price shows a willingness to stall or not want 25:50 Speaker A to go lower and I'm watching price in here to do that so I've collected a small portion of the position also now here's the second time taking something off so a very small portion of the original three standard Lots one that's 26:07 Speaker A the small little fragment of the position price does one more attempt to break lower again now it's ten o'clock so time has passed about a hour and a half is going by and at this time I'm watching price I do not want to see it 26:25 Speaker A reverse or start to show a sign of rejection stop has been lowered to now I'm gonna be trying to lock in 20 pips with my stop-loss as it breaks down I will lower my stop so that way if it does knock me out now 26:41 Speaker A I have 20 pips locked in 25 pips is locked in now we're in an area where it could start to reverse it could fail to get down to that other limit order so I'm not gonna be able to move to stop 26:55 Speaker A because the spread won't permit me to do so so I have to either allow my stop to be hit or my limit order to be taken or I can collapse the trade now I was away from the computer here at the time but 27:08 Speaker A had I been there I would have been collapsing right now well ultimately price comes back up and it does in fact stop me out eventually as you'll see but I profited along the way taking out small portions because you never know 27:29 Speaker A you never know if it's gonna go down to your objective and if you've taken the risk on initially that risk needs to be reduced to a point of which where it's no longer impactful and there's my stop-loss being tagged and there is the fruits of 27:44 Speaker A that short very very predictable in terms of price action and not a bad little scout for a run on stops the context was there everything was outlined and you can see the post trade results ultimately later on you can see 28:06 Speaker A as we showed in the beginning the video your dog does vault up higher after running those stops hopefully you found this insightful until next time wish you good luck and good trading you Topics: ICT trading Forex trading price action liquidity pools order blocks stop runs liquidity raids demo trading trading strategies institutional trading --- This is the markdown twin of https://sozai.app/transcript/youtube-video-transcript-236/ — the same content, without the markup. 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