ICT Day Trading Essentials Explained Clearly By CkTradeZone

 

ICT Mentorship Core Content - Month 08: Essentials to ICT Day Trading

Welcome back, traders! This blog post breaks down the first video of Month 8 from the ICT Mentorship Core Content, titled "Essentials to ICT Day Trading."

In this lesson, ICT introduces his day trading model, focusing on how to capitalize on intraday price movements within the daily range. Below, we'll summarize the key concepts, rules, and strategies in a structured, easy-to-follow format.

Key Point:

ICT's day trading model aims to capture 65-70% of the daily range, not necessarily the exact high/low. It works best when aligned with higher-timeframe institutional order flow.

1. What is ICT Day Trading?

• Goal: Capture 65-70% of the daily range (not necessarily the exact high/low).
• Not everyday trading: Only 2 primary setups per day on average.
• Works best when aligned with higher-timeframe (HTF) institutional order flow (weekly/monthly bias).
• Small stop losses: Ideal for reducing risk in swing/position trades.

Why Day Trading is Challenging

• Most analysts dismiss day trading due to its difficulty.
• Requires precision, but ICT's model provides a structured approach.

2. Key Foundations of ICT Day Trading

A. Daily Range & Average Daily Range (ADR)

• Daily range = High - Low of the day.
• ADR = Average of the last 5 days' ranges.
  • Helps estimate expected daily movement.
  • Some days can double the ADR (rare but possible).

How to Calculate & Apply the 5-Day ADR in Real-Time Charts

• Identify the Last 5 Complete Daily Candles
  On your chart, mark the high and low of each full trading day (excluding the current day).
• Calculate Each Day's Range
  For each day: Daily Range = High - Low (in pips/points).
• Sum the Ranges
  Add all 5 daily ranges together.
• Divide by 5
  ADR = Total of 5 Ranges ÷ 5
• Plot on Today's Chart
  Draw horizontal lines at:
  - Today's Open + ADR (upper expectation)
  - Today's Open - ADR (lower expectation)
• Watch for Expansion Signals
  If price reaches 50% of ADR within the first 2 hours, prepare for possible double ADR day.

Pro Tip: Use this ADR calculation to:
- Set profit targets (take partials at 50% ADR)
- Avoid chasing trades when price has already moved 70%+ of ADR
- Identify potential reversal zones at ADR extremes

Example: If last 5 days' ranges were 120, 90, 110, 105, and 115 pips:
ADR = (120 + 90 + 110 + 105 + 115) ÷ 5 = 108 pips
Today's expected movement: ~108 pips from open (with potential to reach 216 pips on expansion days).

Watch for Expansion Signals: The 50% ADR Rule

Key Concept: If price reaches 50% of the Average Daily Range (ADR) within the first 2 hours of a key session (London/NY), prepare for a potential double ADR day.

Example 1: US200Cash (Beginner-Friendly)

Scenario: London Session (2:00 AM NY Time)

• ADR Calculation: Last 5 days' ranges average = 60 points
• 50% Threshold: 30 points (60 × 0.5)
• Observation: Price moves 32 points by 3:30 AM NY time

Entry Signal:

1. Wait for retracement to 50% of the initial move (16 points pullback)
2. Enter in direction of initial momentum (use 15-min bullish/bearish FVG)
3. Target: Full ADR (60 points) or double ADR (120 points) if volatility expands

Note: On TradingView, plot the ADR indicator and mark the 50% level at session open.

📊 Real-Time Trading Scenario: London Session (Beginner Guide)

1

Understand the Average Daily Range (ADR)

We calculate the last 5 days' price ranges (High - Low each day):

Example: If last 5 days ranges were 55, 62, 58, 65, 60 points →
ADR = (55+62+58+65+60) ÷ 5 = 60 points

2

The 50% Threshold Explained

This is simply half of the ADR (60 points × 0.5 = 30 points).

Why it matters: If price moves more than 30 points early in the session, it suggests strong momentum that may continue.

3

London Session Observation (2:00 AM - 3:30 AM NY Time)

By 3:30 AM NY time, price has moved 32 points (above our 30-point threshold).

This indicates strong directional momentum likely to continue.

4

Entry Strategy

Wait for a 50% retracement of the initial move:

• Initial move = 32 points
• 50% retracement = 16 points pullback

Look for these confirmation signals:

• Bullish FVG (Fair Value Gap) on 15-min chart if upward momentum
• Bearish FVG if downward momentum

Entry Strategy Step-by-Step

1

Measure the Initial Move

After London Open (2:00 AM NY time), track price movement until 3:30 AM NY time.

Example: Price moves 32 points in the first 1.5 hours

2

Calculate the 50% Retracement Level

We wait for price to pull back halfway of the initial move before entering.

Calculation: Initial move (32 points) × 0.5 = 16 points pullback

This means if price moved from 100 to 132 (+32), we'd wait for it to pull back to 116 (132 - 16).

3

Confirm with Fair Value Gap (FVG)

On the 15-minute chart, look for one of these patterns at the retracement level:

Bullish FVG (For Up Moves)

Three candles where:

• First candle has high wick
• Second candle gaps down
• Third candle confirms strength

Bearish FVG (For Down Moves)

Three candles where:

• First candle has low wick
• Second candle gaps up
• Third candle confirms weakness

4

Execute the Trade

If initial move was UP:

• Enter LONG when price pulls back 16 points AND shows bullish FVG
• Stop loss below the FVG or recent swing low

If initial move was DOWN:

• Enter SHORT when price retraces 16 points AND shows bearish FVG
• Stop loss above the FVG or recent swing high

📌 Remember: This 50% retracement strategy works best when:

• The initial move exceeds 50% of the ADR (30 points in our example)
• Confirmed with higher timeframe direction
• Occurs during London session (2:00-5:00 AM NY time)

5

Target Setting

Base target: Full ADR (60 points) from entry

Extended target (if strong volatility): Double ADR (120 points)

💡 Pro Tip: Always check higher timeframe direction before taking the trade. If weekly chart is bullish, prefer long setups in London session.

Example Summary: If price moves up 32pts by 3:30 AM, waits for 16pt pullback, enters on bullish FVG, targets 60-120pts.

Example 2: EUR/USD (Advanced)

Scenario: New York Session (8:00 AM NY Time)

• ADR Calculation: Last 5 days' ranges average = 90 pips
• 50% Threshold: 45 pips (90 × 0.5)
• Observation: Price reaches 48 pips by 9:15 AM NY time
• Confirmation:
  • Alignment with weekly PD array (discount for longs/premium for shorts)
  • 15-min order block forms at retracement

Entry Signal:

1. Wait for London session liquidity sweep (prior high/low)
2. Enter on 5-min FVG + mitigation block confluence
3. Initial target: ADR (90 pips), trail beyond if double ADR conditions met

Pro Tip: Combine with 1-hour fair value gaps for higher probability targets.

How to Implement This Strategy:

1. Calculate ADR: (Day1 Range + Day2 Range + ... + Day5 Range) ÷ 5
2. Mark 50% Level: Draw horizontal line at 50% of ADR from session open
3. Monitor First 2 Hours: If reached, prepare for continuation
4. Entry Rules:
   • Beginner: Retracement to 50% of initial move + FVG
   • Advanced: Liquidity sweep + PD array alignment

📈 5. How to Spot ADR Expansion Days (Real-Time Chart Examples)

🔍 ADR Expansion Rule

When price reaches 50% of the ADR within the first 90 minutes (New York time), prepare for a potential double ADR day.

🕒 Time Zone Clarification

All times are based on the New York time zone (EST/EDT). The critical 90-minute window begins at:

• 8:00 AM – New York Open
• 2:00 AM – London Open

📌 Example 1: US200Cash (Beginner-Friendly)

Scenario: Typical double ADR day in US index.

🧭 Step-by-Step:

1. Pre-Market Prep:
   • 5-day ADR = 120 points
   • 50% = 60 points from open
2. New York Open (8:00 AM):
   • Price opens at 4500.00
   • Bullish institutional flow detected
3. By 9:30 AM:
   • Price hits 4560.00 (50% ADR)
   • Signals double ADR potential
4. Entry Signal:
   • Buy retracement to 4542.50
   • Stop loss below 4535.00
   • Target: 4580–4600

💡 Beginner Tip:

• Use 15-min chart with ADR levels as horizontal lines
• Watch 8 EMA / 20 EMA crossover for trend confirmation

📌 Example 2: EUR/USD (Advanced Technique)

Scenario: London session double ADR expansion.

🧪 Advanced Execution:

1. Pre-London Prep:
   • ADR = 90 pips (5-day avg)
   • PD Arrays: 1.0850 (premium), 1.0750 (discount)
   • Fibonacci tool ready
2. London Open:
   • Price opens at 1.0800
   • Liquidity sweep below Asian low
3. By 3:30 AM:
   • Price hits 1.0845 (50% ADR)
   • FVG appears at 1.0820–1.0825
4. Entry:
   • Enter long at 1.0828
   • Stop: 1.0815
   • Targets:
     1. 1.0860 – ADR
     2. 1.0880 – Double ADR
     3. 1.0850 – Premium array

⚙️ Advanced Tip:

• Confirm with volume profile
• Use 3x1 momentum rule (3 bullish 5-min candles)
• Watch OTF algorithmic confirmations

📊 Key ADR Expansion Patterns

Time Reached	ADR %	Likely Outcome
Within 90 min	50%	Double ADR likely
Within 2 hours	38.2%	Normal ADR day
Within 3 hours	<25%	Range-bound day

🧭 B. Directional Bias – Trading With Institutional Flow

📈 Trade With Weekly Trend

• Higher Probability: Align trades with the weekly candle direction.
• Confirmation: Look for expansion from open to close on the weekly candle.
• Example: If the weekly candle is bullish (close > open), favor long setups during London and NY sessions.

💡 Pro Tip: Use the Sunday/Monday opening price as a weekly bias filter — trade in the direction of price relative to this level.

🏦 PD Arrays (Institutional Levels)

• Premium Arrays: Resistance zones where institutions may sell:
  • Old highs / equal highs
  • Rejection blocks
• Discount Arrays: Support zones where institutions may buy:
  • Old lows / equal lows
  • Bullish order blocks

⚠️ Key Rule: If price hits a PD array opposite to your weekly bias, stop trading that direction.

🔄 Practical Application

1

Identify the weekly candle direction (bullish or bearish).

2

Mark the nearest PD arrays on your daily chart.

3

Only take trades that:

• Align with the weekly trend
• Respect PD array levels

📈 Directional Bias - Trading With Institutional Flow (Beginner & Advanced)

👶 Beginner Level

1

Identify Weekly Trend

Look at the weekly candle:

• 🔴 Bearish: Price closing LOWER than it opened
• 🟢 Bullish: Price closing HIGHER than it opened

2

Mark Key Levels

On daily chart, identify:

• 🔼 Premium Zones (Resistance areas)
• 🔽 Discount Zones (Support areas)

3

Trade Execution

Only take trades that:

• ✅ Match weekly direction (long in bullish weeks, short in bearish)
• ✅ Respect PD array levels (buy at discounts, sell at premiums)

🦾 Advanced Level

1

Multi-Timeframe Analysis

Confirm weekly bias with:

• Monthly PD arrays
• 20/40/60-day institutional levels
• Volume profile nodes

2

Precision PD Array Identification

Mark:

• Rejection blocks
• Liquidity voids
• Order block breaks/retests
• Fair value gaps

3

Optimal Trade Entry

Combine with:

• 15-min FVG confirmation
• Kill zone timing (London/NY opens)
• Liquidity grabs for entries

🔍 Practical Example Flow

1. Weekly Chart: Bullish candle forming (higher closes)
2. Daily Chart: Price approaching discount PD array
3. Execution:
   • Wait for London session
   • Look for bullish FVG on 15-min chart
   • Enter long at discount zone
   • Target next premium PD array

📈 Real-Time Trading Guide (Beginner & Advanced)

👶 Beginner Level Trading Process

1

Identify Weekly Trend

Look at the weekly candle:

• 🔴 Bearish: Price closing LOWER than it opened
• 🟢 Bullish: Price closing HIGHER than it opened

2

Mark Key Levels

On daily chart, identify:

• 🔼 Premium Zones (Resistance areas)
• 🔽 Discount Zones (Support areas)

3

Trade Execution Rules

Only take trades that:

• ✅ Match weekly direction (long in bullish weeks, short in bearish)
• ✅ Respect PD array levels (buy at discounts, sell at premiums)
• ⏰ Trade during Kill Zones (best times)

🦾 Advanced Level Trading Process

1

Multi-Timeframe Analysis

Confirm weekly bias with:

• Monthly PD arrays
• 20/40/60-day institutional levels
• Volume profile nodes

2

Precision PD Array Identification

Mark these advanced structures:

• Rejection blocks
• Liquidity voids
• Order block breaks/retests
• Fair value gaps (FVGs)

3

Optimal Trade Entry

Combine these elements:

• 15-min FVG confirmation
• Kill zone timing (London/NY opens)
• Liquidity grabs for entries
• Mitigation block breaks

🔍 Multi-Timeframe Analysis: Confirming Weekly Bias

1

Identify Monthly PD Arrays

Premium/Discount (PD) Arrays show where institutions are likely to buy/sell:

How to Find Monthly PD Arrays:

• Look for monthly rejection candles (wicks with small bodies)
• Identify monthly highs/lows with strong reactions
• Mark fair value gaps on monthly chart

Example:

If price rejected from 1.2500 with a long wick on monthly chart → This becomes a premium PD array (potential selling zone).

2

Map 20/40/60-Day Institutional Levels

These highlight institutional activity over time:

How to Find These Levels:

1. 20-Day: Swing highs/lows and consolidation breaks
2. 40-Day: Rejection zones from past 2 months
3. 60-Day: Quarterly key turning points

Tip: Use rectangle tools to highlight these levels visually.

Example:

If price reversed from 1.2350 three times in last 40 days → This becomes a strong 40-day premium array.

3

Analyze Volume Profile Nodes

Volume nodes show institutional interest and value:

Key Volume Areas:

• POC: Price level with highest volume traded
• Value Area High/Low: Top and bottom of volume range
• Low Volume Nodes: Thin areas between high-volume zones

Example:

If POC is at 1.2250 and value area is between 1.2200–1.2300 → Expect price to return to this zone.

4

Confirm Weekly Bias

Combine all factors for a high-confidence directional bias:

Confirmation Checklist:

1. Monthly PD array aligns with weekly bias
2. 20/40/60-day levels support direction
3. Volume profile shows smart money interest
4. Weekly candle is expanding in same direction

Trade Example:

- Monthly shows discount at 1.2100 (bullish)
- 40-day support at 1.2150 holding
- Accumulation from 1.2150–1.2200
→ Strong weekly bullish bias

⚠️ Important Note: Always wait for price to confirm at key levels before entering trades. PD arrays show potential reversal zones — not guaranteed moves.

⏰ ICT Kill Zones

Session	Time (NY)	Best For
London Open	2:00-4:00 AM	Initial daily range expansion
New York Open	8:00-10:00 AM	Continuation moves
London Close	11:00 AM-12:00 PM	Reversals/profit-taking

📊 Example 1: EURUSD (London Session)

Kill Zone: London Open (2:00 AM NY time)

Beginner Approach:

1. Weekly trend is bullish (price closing above weekly open)
2. Daily chart shows price at discount zone (support)
3. Wait for London open bullish momentum
4. Enter long on pullback to daily discount zone
5. Target: Next premium zone

Advanced Approach:

1. Confirm monthly PD array aligns with weekly bullish bias
2. Identify 15-min FVG forming during London open
3. Watch for liquidity grab below recent low
4. Enter long on FVG fill + liquidity grab
5. Target: Daily order block above + 1.5x ADR

📊 Example 2: US100Cash (New York Session)

Kill Zone: New York Open (8:00 AM NY time)

Beginner Approach:

1. Weekly trend is bearish (price closing below weekly open)
2. Daily chart shows price at premium zone (resistance)
3. Wait for NY open bearish momentum
4. Enter short on pullback to daily premium zone
5. Target: Next discount zone

Advanced Approach:

1. Confirm 40-day institutional level aligns with weekly bearish bias
2. Identify 15-min bearish FVG forming during NY open
3. Watch for liquidity grab above recent high
4. Enter short on FVG fill + liquidity grab
5. Target: Weekly imbalance zone below + 2x ADR

Real-Time Trade Examples: Step-by-Step Process

Example 1: EUR/USD London Session

Kill Zone	Time (NY)	Key Action
London Open	2:00 AM - 4:00 AM	Initial momentum formation
London Power Hour	4:00 AM - 5:00 AM	Best entry opportunities

1

Pre-Session Analysis

• Weekly bias: Bullish (price above Sunday open)
• ADR: 70 pips (last 5 days average)
• Key levels: Previous day high at 1.0950 (liquidity)

2

London Open (2:00 AM NY)

• Price moves up 25 pips by 2:30 AM
• Breaks yesterday's high (liquidity grab at 1.0950)
• Forms 15-min Bullish FVG at 1.0935-1.0940

Beginner Entry:

• Enter long at FVG retest (1.0940)
• Stop loss: Below FVG (1.0930)
• Target 1: 1.0980 (ADR 50%)
• Target 2: 1.1010 (Full ADR)

Advanced Entry:

• Wait for mitigation block break above 1.0955
• Confirm with 15-min candle close above block
• Enter on retest with 1:2 risk-reward
• Use liquidity void above 1.0975 as target

Example 2: US100Cash New York Session

Kill Zone	Time (NY)	Key Action
NY Open	8:00 AM - 10:00 AM	Main trading window
CME Open	8:20 AM - 8:30 AM	Key liquidity formation

1

Pre-Session Analysis

• Weekly bias: Bearish (below Sunday open)
• ADR: 120 points
• Key levels: Overnight low at 15250 (liquidity)

2

NY Open (8:00 AM)

• Price sweeps overnight low at 15250 (liquidity grab)
• Forms Bearish FVG at 15270-15280
• Rejects from daily premium PD array

Beginner Entry:

• Enter short at FVG retest (15275)
• Stop loss: Above FVG (15290)
• Target 1: 15200 (ADR 50%)
• Target 2: 15150 (Full ADR)

Advanced Entry:

• Watch for liquidity sweep below 15250
• Confirm with mitigation block break below 15240
• Enter on pullback to FVG with 1:3 R/R
• Target liquidity pool at 15180

Optimal Trade Entry Checklist:

1. Confirm higher timeframe bias (weekly/daily)
2. Wait for Kill Zone timing (London/NY open)
3. Identify FVG formation on 15-min chart
4. Look for liquidity grab (previous day high/low sweep)
5. Advanced: Confirm with mitigation block break
6. Enter on retracement with tight stop

Key Concepts Explained

FVG (Fair Value Gap): A 3-candle pattern where middle candle's range doesn't overlap with previous candle

Liquidity Grab: When price briefly sweeps beyond key levels to trigger stops before reversing

Mitigation Block Break: When price breaks through a consolidation area with momentum, confirming direction

Kill Zone Timing: The most volatile periods when institutions are most active (London/NY opens)

🔑 Key Terms Explained

• PD Arrays: Institutional support/resistance levels
• FVGs (Fair Value Gaps): Imbalance areas where price skipped through levels
• Liquidity Grab: False breakout above highs/below lows before reversing
• ADR: Average Daily Range - typical price movement in a day

💡 Institutional Flow Tip: The "smart money" typically moves price between PD arrays. Your edge comes from entering at institutional levels (discounts/premiums) in the direction of their larger timeframe flow.

🚦 Trade Filter Checklist

Element	Bullish Setup	Bearish Setup
Weekly Bias	🟢 Higher closes	🔴 Lower closes
PD Array	Discount zone	Premium zone
Confirmation	Bullish FVG/OB	Bearish FVG/OB

C. Time of Day Matters

ICT focuses on specific trading windows:

Session	Time (New York)	Key Activity
London Open	2:00 AM - 4:00 AM	High volatility, potential daily high/low formation.
New York Open	8:00 AM - 10:00 AM	Best for continuation trades.
London Close	11:00 AM - 12:00 PM	Potential reversals or profit-taking.
Asian Open	8:00 PM - 12:00 AM	Smaller moves, but can form key highs/lows (especially in JPY, AUD, NZD pairs).

Avoid:

• FOMC and Non-Farm Payroll (NFP) days (too unpredictable).
• London Lunch (5:00 AM - 7:00 AM NY time) – Often choppy/consolidation.

How and Where to Focus: Key Time Windows

ICT's day trading model requires precision in timing. Below are the critical trading windows with specific focus areas and pitfalls to avoid:

London Open (2:00 AM - 4:00 AM NY)

• FOCUS Daily high/low formation (70% form here)
• FOCUS Look for manipulation candles before news releases
• FOCUS Trade with weekly bias (confirmed in first 90 mins)

• AVOID Trading without HTF confirmation
• AVOID Chasing moves after first 2 hours

New York Open (8:00 AM - 10:00 AM NY)

• FOCUS Continuation trades from London direction
• FOCUS CME gap fills at 8:20 AM NY time
• FOCUS Retracements into London range (50-61.8%)

• AVOID Trading if London already did 80% of ADR
• AVOID Counter-trend trades before 9:30 AM

Asian Session (8:00 PM - 12:00 AM NY)

• FOCUS Yen pairs (USD/JPY) and AUD/NZD
• FOCUS Surprise highs/lows (when London misses)
• FOCUS Limit orders at PD Arrays (less chasing)

• AVOID Trading EUR pairs (low volatility)
• AVOID Expecting large ranges (usually <50% ADR)

🛑 Critical Filter: Always check if London already completed 80% of ADR before trading New York. If yes, stand aside — continuation is unlikely.

3. Day of the Week Characteristics

Day	Typical Behavior
Sunday	Small range, often ignored (some brokers don't plot Sunday candles).
Monday	Small range, but if large move occurs early, it may set the weekly high/low.
Tuesday	77% chance of forming the weekly low (bullish weeks) or high (bearish weeks) in London.
Wednesday	Best day for trading (midweek, clearer bias).
Thursday	Can reverse weekly trend; if PD arrays are hit, Friday may be quiet.
Friday	Small range, but can surprise if weekly objectives aren't met.

Day of the Week: How and Where to Focus

Key Strategy:

Each trading day has unique institutional behaviors. Focus on London sessions for high-probability setups, and align with the weekly opening price (Sunday/Monday) as your bias filter.

Sunday

• How: Monitor Asian session open (8PM NY)
• Where: Watch for gaps from Friday close
• Focus:
  • Small ranges (often <30% of ADR)
  • Set weekly opening price reference

Monday

• How: Check midnight NY time for early range
• Where: London open (2-4AM NY)
• Focus:
  • If large early move → potential weekly high/low
  • Otherwise expect choppy consolidation

Tuesday

• How: Trade London open reversals
• Where: Key PD arrays (daily chart)
• Focus:
  • 77% chance forms weekly low (bullish weeks)
  • 77% chance forms weekly high (bearish weeks)

Wednesday

• How: Best trading day - midweek clarity
• Where: Both London and NY sessions
• Focus:
  • Continuation moves from Tuesday
  • Daily range often >70% of ADR

Thursday

• How: Watch for weekly reversals
• Where: NY session (8-10AM)
• Focus:
  • If weekly targets hit → Friday may be quiet
  • If not → potential Friday expansion

Friday

• How: Trade only if objectives unmet
• Where: Early London session
• Focus:
  • Small ranges (usually)
  • Surprise moves to weekly PD arrays

Pro Tip:

Combine this with the Weekly Opening Price Filter:

• If price stays above Sunday's open → look for buys daily
• If price stays below Sunday's open → look for sells daily

4. Weekly Range Framework

Key Rule:

• Sunday's opening price (or Monday's if no Sunday data) is a critical filter.
• Draw a horizontal line from Sunday's open across the week.

Bullish Week Example:

• If price stays above Sunday's open, look for buy setups daily (London lows + NY continuations).
• Only invalidated if price trades into a HTF Premium PD Array (potential reversal).

Bearish Week Example:

• If price stays below Sunday's open, look for sell setups daily.
• Only invalidated if price trades into a HTF Discount PD Array (potential reversal).

5. Practical Examples (Case Studies)

Example 1: Bearish Week (Selling Daily)

• Price opens Sunday, trades into a Daily Premium PD Array (rejection block).
• Sells off Monday, stays below Sunday's open → sell London & NY continuations.
• Target = Next Discount PD Array (support level).

Example 2: Reversal at Discount PD Array

• Price is below Sunday's open (bearish), but hits a Daily Discount PD Array (bullish order block).
• No more selling—expect a reversal.

Example 3: Bullish Week (Buying Daily)

• Price opens Sunday, trades into a Daily Discount PD Array.
• Stays above Sunday's open → buy London dips & NY continuations.

How and Where to Focus in the Weekly Range Framework

🔍 What to Focus On

• Sunday/Monday Opening Price - Draw this horizontal line across your chart as the primary filter for the week
• PD Arrays on Daily Chart - Identify premium (resistance) and discount (support) levels from the last 20-60 days
• Wednesday's Price Action - Midweek often confirms the weekly bias with the clearest setups
• Thursday's Reversal Signals - Watch for price crossing back through the Sunday open level

🚫 What to Avoid

• Trading Against Sunday's Open - Never trade long below or short above this level without PD array confirmation
• Friday Over-Trading - Unless weekly objectives are clearly unmet, expect reduced range
• London Lunch (5-7AM NY) - The "dead zone" between sessions often traps traders
• Ignoring HTF PD Arrays - Daily premium/discount levels override weekly framework rules

💡 Why This Works: Key Reasons

Institutional Alignment

The Sunday open represents the institutional "reset" level where new weekly liquidity pools are established. Banks use this reference point for their weekly order flow.

Fractal Nature of Markets

Weekly ranges develop similarly to daily ranges - the opening price anchors price discovery just like the NY open anchors daily ranges.

Order Flow Efficiency

By focusing on PD arrays, you're trading where institutions are actually placing orders rather than chasing retail patterns.

⚡ Pro Tip: The Wednesday Advantage

Wednesday provides the clearest signals because:

1. You have 2-3 days of price action to confirm the weekly bias
2. The midpoint of institutional weekly positioning often reveals their true intent
3. False breakouts from Monday/Tuesday are usually resolved by Wednesday

Save your highest conviction trades for Wednesday London/New York sessions.

6. Final Takeaways

• ✅ Trade with the weekly trend (use Sunday/Monday open as a filter).
• ✅ Focus on London & NY sessions (best volatility).
• ✅ Only 2 setups per day max (don't overtrade).
• ✅ Use PD Arrays to confirm reversals/continuations.
• ✅ Avoid FOMC/NFP days (high risk, low reward).

This is just the foundation—ICT will expand on these concepts in later lessons. Stick to the rules, and trade smart!

How, Where, and What to Focus On (Key Trading Rules)

✅ WHAT TO FOCUS ON:

• Daily Range (65-70% Target): Aim to capture the majority of the day's movement, not the exact highs/lows.
• 2 Primary Setups/Day: Typically only 2 high-probability trades per 24-hour period.
• Higher Timeframe Alignment: Day trades should align with weekly/monthly PD Arrays (Premium/Discount levels).
• Sunday Opening Price: Critical filter for weekly bias (use Monday open if no Sunday data).

🔑 KEY REASON WHY:

Institutional order flow drives price to PD Arrays. Trading with this flow increases win rates by 70-77% on key days (like Tuesdays).

🌐 WHERE TO FOCUS (Session Strategies):

• London Open (2-4AM NY): Look for daily highs/lows to form here (ICT Kill Zone).
• New York Open (8-10AM NY): Best for continuation trades (easiest to trade).
• Asian Open (8PM-12AM NY): Watch for JPY/AUD/NZD reversals.

❌ WHAT TO AVOID:

• FOMC/NFP Days: Price action is too erratic ("no setup days").
• London Lunch (5-7AM NY): Choppy consolidation or reversals.
• Overtrading: Don't force trades if the 2 primary setups don't appear.
• Ignoring PD Arrays: Never trade against a tested Discount (support) or Premium (resistance) level.

📌 CRITICAL PRICE LEVELS:

• Premium PD Arrays: Look for sell setups when price reaches these levels (old highs, equal highs, rejection blocks).
• Discount PD Arrays: Buy setups form here (old lows, fair value gaps, bullish order blocks).

💡 PRO TIP:

Tuesday London Open: 77% chance of forming the weekly low (bullish weeks) or weekly high (bearish weeks). This is the highest-probability day for day trades.

⏰ TIME-SPECIFIC RULES:

• Before 8:30AM NY: Most daily ranges are established by this time.
• 3PM NY (Bond Market Close): Daily range usually completes here.
• Afternoon NY: Avoid trading past noon unless targeting Asian session.

Next Lesson: We'll dive deeper into entry techniques, stop placement, and real-time examples.

Happy trading! 🚀