• That's why the C.E is important.
Once price breaks through a breaker it's a true sign of weakness/strength.
• And that's why FVGS are included in the main mechanics of price:
"Price moves only to do two things; Attack a high/low, or rebalance an imbalance. (Liquidity pool)"
The chart is a time machine,
When you backtest... live in the moment you are backtesting.
Do this in two phases:
(1/2)
1- Ask yourself what would you have/not done? Where would you have placed your stoploss? When partial? Would a sharp retracement scare you away? 2- After you're honest with yourself; start lying to yourself that you had seen this and that, and managed it in so and so manner.
• Program your brain enough, and your pattern recognition instincts will kick in without you feeling.
• Although the best form of learning is done through tape reading; History of price action is a gold mine.
Finally.. History repeats itself for those who have eyes to see.
Like any other school of analysis, whether it be Wycoff, Gann, Elliot, Harmonic, Supply and demand, classical price action, ..etc
ICT simply sat down and observed how price moved, and in addition to his "retail" knowledge; he refined it more than any other school of thought;imo.
There is no secret algorithm which he coded.
Lol.
That's either his mental way of coping with all the trauma he went through on his path to discover the truth behind the candlesticks;
Or it's his way of branding his hard work.
Either way he's not wrong.
"His" concepts, are what anyone who sits down long enough infront of a chart will discover.
He just gave it to you summarised and saved you a bunch of time.
It cannot stop working.
It's literally the way candlesticks have worked since the beginning.
• Approach HTF pd array (no touch)
>
• False bottom (bottoms in Carl, sell your wife and long)
>
• Dig DEEP into htf pd array (scare Carl away, accumulate longs, turtle soup, FALSE BREAKDOWN)
>
• Expansion.
Always like to include a live call/trade I did when I explain something; here is a picture perfect example of bitcoin at 15keks (key level at 16,200)
Note the pattern price was following, before hitting the key level:
1- You will lose money, but that's the easy part. 2- It will cloud your judgement for the foreseeable future depending on how attached you were to it.
Listen to the market.
The market does whatever the fook it wants.
A Fine detail on number 2:
If you were really motionally attached to a bearish bias... & the market turned out to be bullish; you may feel like the market still might come back to your original idea and go lower = you will be afraid of turning bullish and following the market.
This phenomenon is a result of your clouded judgement due to being attached to a bias, it will especially affect higher time frame traders as they have to wait between setups.