Trading Course Day 4 – Entries

The video introduces 'Continuation' as the most crucial part of the trading strategy, building upon the foundational 'Indication' and 'Correction' steps. Continuation involves waiting for price to flip the trend after a correction, using higher timeframes for overall direction and lower timeframes (15-minute or 5-minute) for pinpointing reversals and entries. The speaker will explain this process using real trade setups.

The speaker reiterates the importance of 'Indication' and 'Correction' as prerequisites for understanding continuation. Indication marks a new high or low, signaling a potential trend change, while correction is a temporary move against the main trend, trapping liquidity. The video demonstrates marking up charts using the 1-hour timeframe to identify these initial phases.

An example of an uptrend is shown, where price breaks a support level, creating a 'new low' and an 'indication' of a downtrend. The speaker stresses that an indication always creates a new high or low, and traders should focus on recent price action (last 3-5 days) rather than historical data. The concept of waiting for a second confirmation (continuation) after an indication is introduced to avoid fake-outs.

The video delves into a correction phase within a downtrend, showing how price moves up, building higher highs and higher lows on a lower timeframe. The speaker explains that this upward movement within a downtrend is a correction grabbing liquidity. When price fails to make a new high and forms equal highs, it signals a potential end to the correction. The key is to wait for price to break the correction's support level, indicating a continuation of the higher timeframe downtrend.

After identifying an indication (new low) and a correction that forms a lower high, the video demonstrates how to enter a trade. The strategy involves selling below the identified support level of the correction with a stop loss above the previous high. The target (TP) is the 1-hour timeframe's new low, where the initial indication began. This emphasizes using lower timeframes (5-minute or 15-minute) for precise entries while aligning with the higher timeframe's overall direction.

The speaker advises on when to exit a trade by observing if price starts to build an uptrend against the initial bearish continuation. If price breaks above a lower high or forms higher supports, it signals a potential trend reversal, and it's time to exit. Another example is given where a 'fake-out' indication to sell is avoided because the critical 'correction' and 'continuation' steps were not met, preventing premature entry and loss.

A final example reinforces the ICC strategy: price makes a high, breaks below its support (indication), corrects to form a lower high, and then continues to break below the correction's low. This setup allows for an entry (sell) below the correction's support, with a stop loss above the lower high, targeting the initial new low from the 1-hour timeframe. The speaker confirms these are actual trades taken and demonstrates the effectiveness of the ICC model for precise entries and managing trades.