ICT Core Content Month 02 -Part-2 Framing Low-Risk Trade Setups

What makes the setup worth taking?

1) Selecting trade setups on higher time frame charts is ideal:


Trading on higher time frames provides a broader perspective of market trends and reduces the noise associated with lower time frames. It allows for more accurate analysis and decision-making.

2) Large institutions and banks analyze markets on a Daily, Weekly, and Monthly basis:


Aligning with the analysis and actions of large institutions and banks increases the likelihood of profitable trades, as these entities often have a significant influence on market movements.

3) Locating price levels that align with institutional order flow is key:


Identifying price levels that correspond with institutional order flow enhances the probability of successful trades, as these levels are likely to attract significant buying or selling interest.

4) Higher time frame setups form slowly and provide ample time to plan accordingly:


Setups on higher time frames tend to evolve gradually, allowing traders more time to analyze and plan their trades meticulously, resulting in well-informed decisions and potentially lower risk.

B. What can we do to lower the risk in the trade?

1) The higher time frame has more influence on price, so we focus on the following:


Emphasizing higher time frames for analysis and decision-making helps in identifying more significant trends and reducing the impact of short-term price fluctuations, which can lead to more consistent and less risky trades.

2) The conditions that lend to a trade setup on a higher time frame can be refined to lower time frames:
Adapting the analysis and conditions from higher time frames to lower time frames allows for a more detailed assessment of potential trade setups while retaining the overall higher time frame trend perspective, aiding in risk reduction.

3) Transpose the higher time frame levels to lower time frame charts:


Transposing key levels and insights from higher time frames to lower time frames helps in pinpointing entry and exit points more precisely, contributing to tighter stop-loss placement and reduced risk.

4) Refining higher time frame levels to lower time frame charts allows smaller stop loss placement and risk:
By honing in on lower time frame details while aligning with higher time frame analysis, traders can set smaller stop losses, reducing potential losses and overall risk in the trade.

ICT Core Content Moth2 Part 1
ICT Core Content Moth 2 Part 3
ICT Core Content Moth 2 Part 4

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