Thread by @Trader_DaanNL

ICT CORE CONTENT EP.1

Short term trading using the Monthly and Weekly ranges.

A thread..🧵

1/ What is short Term Trading?

Trading for a duration of one week to a few days. We use both Monthly and Weekly charts to frame setups and trade in the direction of the present or next week's range. Understanding the Weekly Range is essential.

2/ The Short Term Model can be both Trend or Range based. The goal is to identify clear setups forming, not to force trades. Short Term Trading offers the highest probability discipline with frequent setups and consistency.

3/ The PD Array Matrix: Defining market conditions involves considering where the Price can reach in both a rally and a decline. This forms the foundation for determining likely market direction.

4/ The PD Arrays indicate that when Discount Arrays provide support for price, probabilities increase that Premium Arrays will be sought above the market price. Similarly, when Premium Arrays provide resistance for price, probabilities increase for seeking lower Discount Arrays.

5/ In short, we look for a monthly PD array based on our directional bias, and then search for an opposing weekly PD array. This becomes our target range. Waiting for more information or expired PD arrays is a strategy when uncertainty exists.

6/ To analyze the market comprehensively, we examine all PD arrays on the Monthly, Weekly, Daily, and 4h timeframes. If we outline premium and discount arrays and have a bearish bias, we want to see the discount arrays break continuously until we reach the weekly discount array.

7/ The 1h chart serves as our executable chart regardless of the timeframe of the array. If price is already moving away from the monthly premium, we drop down to the weekly chart and analyze the weekly or daily arrays.

8/ Depending on the timeframe of the array, we may see multiple short-term trades form if it's from a higher timeframe (HTF) array. If it's from a 4h array, the number of setups may be fewer but still highly probable.

9/ We execute on every array from the 1h chart. This ensures we capture opportunities in the market efficiently and make informed trading decisions.

10/ The swing trade progression offers potential buying opportunities in this fractal, with 16 possibilities. This doesn't include short-term trades on retracements, which can also be traded.

11/ General Concept Revisited: The market is poised to trade higher on the higher timeframe (HTF) due to seasonal tendencies, interest rate-driven factors, commitment of traders, and intermarket analysis supporting bullishness.

12/ After a market rally, we often witness a retracement occurring between Monday and Wednesday. During this retracement, we apply the PD array to analyze potential market movements. The sweet spot for Asia is between 6 pm and 9 pm, avoiding the lunchtime period around 10 pm

13/ The 1h PD array can also be executed within the inside killzone. This allows us to make use of specific timeframes to optimize our trading decisions.

14/ It's not necessary to have the seasonal tendency on our side. While it can provide additional insight, the fractal nature of price analysis allows us to consider other factors for trading decisions

15/ Monthly Ranges: Price is fractal, and analyzing higher timeframes benefits us. We note the high and low on every monthly candle and consider the present range in terms of premium or discount. This helps frame trades on the weekly range.

16/ Weekly Ranges: Building on the analysis of the monthly timeframe, we note the high and low on every weekly candle and consider the present range in terms of premium or discount. This guides us in framing trades on the daily chart.

17/ If the high of the Monday through Wednesday range is broken on Thursday or Friday, it generally indicates a strong upward movement towards our premium array. This serves as a potential buy program. This is vice versa if we are bearish.

That was it for today if you like the content, I would appreciate a like and retweet.

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