Video summary

ICT - Mastering High Probability Scalping Vol. 1 of 3

Main summary

Key takeaways

Finance

Finance-Focused Summary (Markets, Strategy, Setups)

Instruments / Tickers Mentioned

  • FX pairs:
    • USD/CAD (also referenced generally as “dollar cad”)
    • EUR/USD
    • GBP (implied via “pick for majors” / “basket of currencies,” but no specific ticker listed)
  • No other asset classes (stocks/ETFs/bonds/commodities/crypto) are explicitly mentioned.

Core Strategy: “High-Probability Scalping” (Liquidity Runs)

The approach focuses on running buy-side liquidity (buy stops above prior highs) within an intraday window, using:

  • Daily structure for directional bias
  • Hourly levels for execution context

Directional Bias Framework (Daily Structure → Intraday Liquidity Target)

Bullish Bias (Buy-Side Liquidity Run)

  1. Wait for a swing high to be broken to the upside.
  2. Then wait for a swing low to form (described as a 3-candle / 3-bar formation).
  3. After the swing low forms, watch “candle #3’s” high to be violated (traded through).
  4. Once violated, look for a run on the previous day’s high (and possibly the two-days-ago high) as the buy-side liquidity target.

Bearish Bias (Sell-Side Liquidity Run)

  • The process is described as the reverse:
    • Break a swing low
    • Form a swing high retracement pattern
    • Then look for a run on the previous day’s low

Execution / Targeting Rules (Step-by-Step)

Timeframe Logic

  • Daily chart: sets bias and identifies swing structure.
  • Hourly chart: maps where liquidity is (e.g., previous day highs/lows, two-days-ago levels).

Lookback Window

For the “simple day trading approach,” monitor the last 3 days:

  • Today counts as day 0
  • Example given: if recording day is Thursday, use Wednesday + Tuesday data
  • The method references looking back to include up to three days

Liquidity Target (Bullish)

  • Target the previous day’s high (and/or older highs from yesterday or two days ago).
  • Rationale: when price moves above an old high, it can force buyers, converting resting stops into market orders.

Entry Concept (Optimal Trade Entry / Retracement Zone)

  • Uses Fibonacci retracement:
    • 62% and 70% zones are explicitly called out as “sweet spots”
    • 70.5 is also mentioned as a sweet spot for one scenario
  • Uses candle body references for Fib:
    • Draw Fib using session highs/lows (London and/or New York)
    • Low point: lowest open/close (lowest body)
    • High point: highest open/close (highest body)

Kill Zones (Timing Filter)

The strategy emphasizes trading during specific hours relative to New York time:

  • London kill zone: ~2:00 AM to 4:00 AM NY
  • New York kill zone: ~7:00 AM to 10:00 AM NY

A setup overlapping these windows is described as higher probability; outside them is less favorable.

Risk / Trade Management Stance

  • Take profit at prior highs (liquidity targets).
  • The trade is implied to be over once the run-through of the targeted previous high occurs (i.e., no chasing beyond the objective).
  • Avoid forcing trades:
    • The recommendation is typically 1–2 trades per week after building consistency (after demo practice).

Key Numbers & Performance-Related Specifics

  • Scalp size target: 10 to 30 pips
  • Example move mentioned: roughly 30–50 (almost 70) pips, mostly within about one hour (example date: October 5)
  • Retracement levels referenced: 62%, 70%, and 70.5
  • Time windows:
    • 2–4 AM NY (London kill zone)
    • 7–10 AM NY (New York kill zone)
  • Momentum duration (daily bias persistence): typically 2–5 days (described as lasting a few days)

Explicit Recommendations / Cautions / Disclaimers

“I did not say profitability I cannot promise…”

  • Informational only: “Only for informational purposes only.”
  • Demo emphasized:
    • Use demo to learn
    • No guarantee demo results match live trading
    • If trading live, user assumes responsibility
  • Do not trade every day / do not force setups:
    • Forcing entries increases the chance of losses.
  • Pair focus guidance (for beginners):
    • Focus on one major FX pair for about one month (major crossed with a dollar)
    • Later, after learning, expand to a small basket, but not 28 pairs

Presenters / Sources Mentioned

  • ICT / Inner Circle Trader (speaker referenced via “inner circle trader” brand/identity)
  • Larry Williams (mentor/source influence; also references “Bill Williams fractal” naming and critiques the naming)
  • Bill Williams (mentioned in the context of fractals)

Original video