"This one template right here is the #1 principle that I use to make millions of real dollars, not demo dollars" - ICT
Concept
- Asia Ranges
- London Open manipulation into sellside HTF PD array
- Expansion in opposing direction of manipulation (buyside)
Execution
- London Open manipulation causes price to take liquidity & drop below Midnight Open
- Strong displacement in opposing direction above Midnight Open
- Breaker + FVG forms the perfect entry
โข Short term high/low forms
โข MUST take out STH/STL within a HTF key level
โข Displaces in the opposite direction of the sweep flipping the order block into a breaker block
โข Bullish - A bullish breaker block is an up close candle in the most recent swing high prior to an old low being violated
โข Bearish - A bearish breaker block is a down close candle in the most recent swing low prior to an old high being violated
Identifying:
1. Price trades lower and creates a short term low 2. Short term low is violated 3. Price runs the higher timeframe sell stops indicating sellers are trapped short 4. Price runs through the old high and reprices lower, retracing back into the old high 5. Price respects this zone and continues toward buyside confirming that the bearish order block has flipped into a bullish breaker block
Price moves from an area of liquidity to another area of liquidity. Buyside liquidity represents an old high where buy stops rest above, sellside liquidity represents an old low where sell stops rest under - these are considered external liquidity. Once price takes out external liquidity it often seeks internal liquidity, this is in the form of fair value gaps.
Forms of Liquidity:
Internal Range Liquidity - Fair Value Gaps/Imbalances are considered internal range liquidity (IRL)
External Range Liquidity - Old highs and lows such as previous monthly/weekly/daily highs & lows, previous session highs & lows such as Asia high/low for example.
Two correlated assets briefly decorrelate on a specific timeframe (must be the same timeframe) which indicates a reversal. SMT divergence can be spotted using highs and lows, for example one asset forms a higher low while its correlated asset forms a lower low.
Utilising:
We wait for a crack in correlation on the same timeframe. As shown in the image below, the pair on the left swept buyside while its correlated asset didn't. The pair on the right continued toward sellside without sweeping the highs, making it the weaker pair.