How I Caught 100 pts on $NQ | Trade Review

Introduction

This tutorial provides a step-by-step guide on how to effectively trade futures using ICT (Inner Circle Trader) concepts, based on a recent trading review. It will cover strategies for entering and exiting trades, understanding market structure, and utilizing price action following major news events.

Chapter 1: Understanding Market Structure

• Identify High Impact News:

  • Monitor economic calendars for scheduled high-impact news releases (e.g., CPI, PPI).
  • Wait for the market to react to these events before entering trades.

• Analyze Price Movement:

  • Observe the price action after news releases, like displacement to the upside or downside.
  • Look for confirmation of a market direction by checking how price behaves around significant support and resistance levels.

• Use Fair Value Gaps:

  • Mark 5-minute and 15-minute fair value gaps on your chart.
  • Understand that these gaps can act as potential entry or exit points in your trading strategy.

Chapter 2: Entry and Exit Strategies

• Timing Your Entry:

  • Preferably enter trades after major news events, like at 10:24 AM following an economic report.
  • Enter at the close of a candle that shows strength, particularly after a pullback or gap fill.

• Setting Up Your Trade:

  • Use identified lows and fair value gaps as potential entry points.
  • Look for bullish reactions at those levels to confirm your trade direction.

• Managing Your Position:

  • Start with a conservative position size, like 2 contracts, to manage risk effectively.
  • Move your stop loss to break even once you achieve a certain profit level to safeguard your gains.

• Targeting Profits:

  • Identify key levels aligned with FIB (Fibonacci) values and previous swing highs or lows for profit targets.
  • Be prepared to exit partially at significant resistance areas while allowing some positions to run for potential larger gains.

Chapter 3: Embracing Volatility

• Anticipate Market Moves:

  • Understand that high-impact news can lead to increased volatility; be prepared for rapid price movements.
  • Use this volatility to your advantage by holding runners (positions) if the market shows continued strength.

• Recognizing Confluences:

  • Look for multiple technical indicators aligning (e.g., price levels, FIB retracements) to strengthen your trade convictions.
  • This adds confidence to your trading decisions and helps in managing trades effectively.

Conclusion

In summary, successful futures trading involves a clear understanding of market structure, strategic entry and exit points, and effective risk management. By focusing on high-impact news events, utilizing fair value gaps, and recognizing price action patterns, traders can enhance their decision-making process. Keep refining your strategy and always be prepared to adapt to market conditions. Consider joining live streams or trading communities to share insights and learn from others. Happy trading!