ICT Daily Profile - Seek & Destroy

Introduction

This tutorial focuses on the "Seek & Destroy" concept from the ICT Daily Profile series. It aims to help traders align their daily bias and confirm or invalidate trading setups using daily profiles. Understanding this method can enhance your trading strategy, especially in the context of futures and day trading.

Step 1: Understand S&D Profile

• Definition: The Seek and Destroy (S&D) profile helps identify potential entry and exit points in the market.
• Components:
  • Daily Profile: Breaks down price action into key levels.
  • OHLC: Understand the Open, High, Low, and Close of the previous trading day.
• Practical Tip: Familiarize yourself with how to read daily profiles, as they serve as the foundation for your trading decisions.

Step 2: Analyze Lower Time Frames

• Importance: Lower time frames (like 1-minute or 5-minute charts) provide more granular data.
• Action:
  • Use these charts to pinpoint precise entry points based on the S&D profile.
  • Look for patterns or signals that align with your daily bias.
• Common Pitfall: Avoid over-analyzing; focus on clear signals instead of minor fluctuations.

Step 3: Identify Why and When to Trade

• Key Questions:
  • Why are you entering a trade?
  • When is the best time to enter based on market conditions?
• Tip: Align your trading with market sessions, such as the Asian or London sessions, for optimal results.

Step 4: Recognize Asia and Opening Price Levels

• Asia Session: Analyze price action during the Asian session to set up your bias for the day.
• Opening Price: The opening price of the day can act as a significant level; observe how the market reacts to it.
• Action: Mark these levels on your chart to help guide your trading decisions.

Step 5: Understand Discount and Premium Zones

• Concept:
  • Discount Zone: A price level considered low relative to recent prices, often a buying opportunity.
  • Premium Zone: A price level considered high, often a selling opportunity.
• Application: Use these zones to determine potential trade setups based on your analysis.

Step 6: Establish Initial Range

• Definition: The initial range is the price movement observed during the first hour of trading.
• Action:
  • Identify this range as it often acts as a support or resistance level for the day.
  • Plan trades around these levels to capitalize on market movements.

Step 7: Observe London Expansion

• Concept: London session often brings increased volatility and volume.
• Action:
  • Look for breakout patterns during this time.
  • Use the initial range as a reference for potential breakouts.

Step 8: Review Trading Examples

• Example 1: Analyze a specific trade setup based on the concepts discussed.
• Example 2: Review another scenario to reinforce understanding.
• Tip: Record your analysis to learn from past trades and improve future decision-making.

Step 9: Avoid Common Mistakes

• Pitfall: Relying too heavily on indicators without understanding market context.
• Tip: Focus on price action and key levels rather than solely on technical indicators.

Conclusion

Mastering the Seek & Destroy method within the ICT Daily Profile framework can significantly improve your trading strategy. By understanding daily profiles, analyzing lower time frames, and recognizing key market levels, you can make more informed trading decisions. Consider reviewing this tutorial regularly and applying these concepts in your trading practice for optimal results.