All language subtitles for Lesson 3 - Central Bank Dealer_s Range EN

Good folks.

Welcome back.

This is less than three of the
April, 2017 ICT mentorship content.

This month.

We're teaching ICT.

Day-trading.

And this teaching is specifically
teaching central bank dealers range.

Okay.

For central bank dealers range, I'm
going to assume you've already went

through my YouTube tutorial, dealing
with the central bank dealers range.

But if you haven't gone through
it, this one's going to pretty much

teach you everything you should
have gleaned from that lesson.

Anyway.

We're going to assume for a moment
that you have an understanding

of standard deviations.

Now, first we have to have a range or a
number or a level in terms of a central.

Vocal point and then it has to
deviate above it or below it.

They give us our date deviation.

Well, the central bank dealers
range is a specific time of the day.

We're going to teach in this lesson, but
for now I want you to think about ranges

in terms of a predefined higher level.

And we're going to say the central box
here represents the central bank dealer's

range, and I'll get into the specifics and
show you what it looks like in the chart.

But for now we have to know.

Conceptually, if there's a range
that we have deemed a specific

important range in price.

Once we determined that that range
height from high to low based on two

different types of parameters, which
we'll go over that measurement of

price range in terms of pips can be
reproduced or replicated, if you will,

in the form of a standard deviation.

One standard deviation above and below
would be the same range added to the

high, the central bank dealers range.

And one standard deviation is the same
range that makes the central bank dealers

range in total range in terms of pips.

And we subtract that range from
the central bank dealers range

low, and that would give us one
standard deviation above it.

And one standard deviation below.

That range would be added to the
high of the first standard deviation

and subtracted from the low of the
first standard deviation below giving

us the second standard deviation.

And this would go one replicating
that central bank dealers range with

standard deviations, 1, 2, 3, and four.

Typically most cell days we'll create the
high of the day from the central bank.

Dealers range up to three
standard deviations.

Most by days we'll create the low of the
day from the central bank dealers range

down to the third standard deviation.

Ideally sell days, create
the high of the day.

No more than two standard
deviations above the central bank.

Dealers range many times
just one standard deviation.

Ideal by days we'll create the low of the
day, no less than two standard deviations

below the central bank dealer's range.

And ideally many times you'll see
it just go one standard deviation

below the central bank dealers
range creating the low of the day.

Four standard deviations above four
high today is going to be on the

heels of a very high impact news
event for the session in London.

Same thing as said on by days, if
it trades down to four standard

deviations, usually it's going
to be very high, impactful news.

Price can come down or go up to the
fourth standard deviation to create a

New York session market reversal profile.

Okay.

Dealing specifics with the central
bank dealers range, the time

period that frames the central bank
dealers range is 2:00 PM to 8:00 PM.

New York time.

The ideal range is less than 40 pips.

Preferably the range should
be no more than 20 to 30 pips

in total range, high to low.

So what are we saying here between 2:00
PM and 8:00 PM, New York time, regardless

of where you live globally, you need to
find where your price charts indicate

what would be seen as the candle that
starts to 2:00 PM and 8:00 PM time.

In New York time.

So for completeness sake and the
sake of avoiding all confusion, like

everything else, I always teach, find
out what New York time is, where you're

at geographically, then find out what
that looks like in your platform for

your charts and delineate that with a
vertical line with 2:00 PM, New York.

And 8:00 PM New York between those
two time windows, the highest

high and the lowest low ideally
should be less than 40 pips.

Preferably 20 to 30 pips.

Total range is larger than 30 pips
contend to be unfruitful for projections.

Now we can use.

The range in pips by calibration
from high to low or using the Wix or

alternatively, we can use the range in
the highest body and the lowest body

as well, whatever the highest closing
or open prices and wherever the lowest

close or open is in between 8:00 PM.

2:00 PM New York time.

Now obviously we need to know
directional bias for this to

be of any assistance to us.

So it has to be used in conjunction
for our projections to work.

The central bank dealer's range.

Strength is aiding in the low of
the day or high the day selection.

That's the most important thing as a day
trader, we can focus on if we can look for

the highest probable high or low the data.

We're in terms of when markets
are bullish, we're looking

for the low, the data forum
predominantly in the London session.

So where is that low, most
likely going to occur.

And is it going to be on a day that's
highly favorable for that event to unfold?

Remember I said many times
over the last seven years.

Teaching for X online that I
don't trade every single day.

And even in this mentorship, you've
seen that it's not productive to try

to trade every single trading day, but
there are times we're going to learn that

there are highest probabilities for a
condition to be met for that higher load.

The forum in London, when we have
these conditions, we can go in

with reasonable expectation that
we have a good chance more than.

Most days that the higher
low will form in London.

And we can get a ballpark idea where
that lower high should form using

the central bank dealers range.

So the central bank dealers range
main focus is to help you find

the high or low of the day in
respective bullish or bearish stays.

In other words, if we're bullish
on the market as a whole, or if

we're looking for one shot, one.

For the week, that's predominantly
expected to go up for a Friday, close

higher than where it opened up on Sunday.

For instance, if we're looking for one
shot, one kill in a bullish week, we're

going to be looking primarily for low
the day in London, each day, Tuesday,

Wednesday, and Thursday, preferably those
days, but it could occur on Monday as

well, but we're looking for the low of the
day, the forum in London in that crisis.

But just because we're looking for
the low, the form and be a bullish

clothes every single day doesn't mean
this highest probability set up and

we can use the central bank dealers
range to help frame that context as

we'll teach in this lesson here, but
we're using Wix in this example here.

So every one of these blue boxes
represents the central bank

dealers range for that respective.

Now this chart represents the central
bank dealers range with using the bodies.

Now I will have to admit to you, I
like to use the bodies predominantly

because the wicks are always going to
show erroneous price because of your

dealing spread through your broker.

Everyone's going to have a
disparity between their high

and their low on every candle.

It's never going to be.

So, what I use is the bulk of the trading,
which is the body, uh, that in my opinion,

and there's no real panacea of be all
end, all answer for this, but mine.

Uh, studies over the last two decades
is if we focus primarily on the

bodies of the candles, we're going
to get more closer to what the smart

money is doing in relative terms.

Then if we use just the Wix, now we
can get a lot of feedback in terms

of what retail is dealing with.

We study with.

But if we study the bodies of the candles
and we frame our ranges with that,

we'll get more clear pictures about
what the institutional accumulation

distribution ranges are going to be when
we use the central bank deals range.

So as you can see here, each one of
these ranges has its respective ranges.

In terms of pips.

The first is 13 pips.

The next is 58 pips.

The next is 19 and the last, and
this example is 16 pips in range.

So using the bodies, we're going
to focus primarily on that.

Now, before I go into great detail,
I want you to think about just

because I like using the bodies and
I think it's got the most advantage.

We still have to look at the
ranges with the wicks included.

Okay.

So let's take a closer look at each
example here for this first one, we have

replicated that central bank dealers
range, the little blue shaded area.

Duplicated that range and projected
up one standard deviation.

That was that's what
the one SD stands for.

So one standard deviation and
second standard deviation, which

is just basically the central bank
dealers range, total PIP range.

Or in that case, 13 pips, we added 13
pips more and it added 13 pips more

so for a total standard deviation of
two, notice how it takes your rate to.

The high of the day formed in London,
that particular session immediately after

the central bank dealers range closes.

So in other words, at 8:00 PM, starting
the Asian range project, that range

that we created for central bank dealers
range two standard deviations up that

gives us the projected London high.

Now it does not mean it's
going to call it to the PIP.

It might go a little bit above it.

It might fall a little short of it,
but it gives us a range to look for.

The next one.

In our example here, the range is 58 pips.

Now this is too large.

Our rules state that we want to have
40 pips or less ideally 20 to 30 pips.

So this particular trading day, we have.

Allow the market to do
whatever it wants to do.

If we're going to scalp,
that's another thing.

But for day trading, we can't use
this criteria because it's too large

of a central bank dealers range.

And this is not what I taught in the
free teaching on my YouTube channel.

But when you're using central
bank dealers range, projections,

highs, and lows, the criteria is
20 to 30 is ideal in terms of pips.

It has to be less than 40 generally,
but ideal ranges are 20 to 30 pips high.

The reason why is if the average
daily range of the candle for the

daily chart that you're trading is
typically around a hundred pips of site.

Now they're not always a hundred
pips, but I like to use as a ballpark

figure general rule of thumb.

If we have a hundred pips, one
third of that is around 3,300.

So that's why I give them a
20 to 30 pips ideal scenario.

Uh, it w you want to be less
than 40 pits for that reason.

So for power three, uh, concept
to unfold, if we're bullish, we're

looking for the opening price and
in the market to trade down 20 to 30

pips, ideally no more than 33 pips.

If it trades beyond
that, we don't want that.

C a trade more than 40 pips.

It doesn't mean it can't, but ideal
scenarios, the drop down from the

opening price on accumulation days
where the low of the day is formed

and we have a higher close bullish.

We're looking for that 20 to 30 PIP
drop down and we can use the central

bank dealers reigns to confirm that with
other things that we'll teach in the

next lesson, the next example, here we
have one standard deviation projected.

And you can see, we just about hit that,
but it was definitely inside the first

stand deviation, creating the low of the
day and price trades up aggressively.

The next example, we had one standard
deviation projected below and second

standard deviation projected below.

So now we have two standard
deviations below the central bank

dealers range for this particular.

And it takes us right down
to the low of the day.

It was only off by one pit
that went the low one pit.

And then we saw the load that they formed
in London, looking at this, obviously,

you know, it looks like cherry picking
hindsight and all that business, but

I want you to take in consideration.

When we look at price,
we have to have a bias.

What do we think price is going to do?

Is price going to go higher or lower
over the next two or three days?

What's the price most likely going
to do over the course of this present

week or next week is going to go
higher as a go and look, go lower.

Where are we at seasonally?

Are we looking for bullish
prices or lower prices?

Where are we at quarterly?

Are we in a quarterly
shift that is underway.

That's still unfolding with
bullish prices with premium

PDA raise to haven't been yet.

If that's the case, then we could be
looking for scenarios to look for buys.

So we're looking at discount PDRs.

We're looking at reasons to
suggest buying in a discount range.

So our PDA rate matrix is going
to help us look for reasons to

build ideas that are bullish.

If we look for those ideas, The central
bank dealers range in conjunction

with those it'll help us narrow down
with time of day London open it'll

help us frame it ideal entry point.

So if we look at the daily chart and
we see price trading up at a premium

PD at right and markets are bearish,
we're looking for lower prices

for one shot, one kill scenario,
looking for a lower close week.

We could be looking for one, two or
three standard deviations moved home.

When the central bank dealer trains
is around 20 to 30 pips, ideally.

And if we get that projection up
into London, we have a great deal

of advantage on our side that we're
probably going to get the high

of the day in the London session.

Now you add that also
with your expectation of.

Seasonal tendencies.

All of those things start coming
together and draw closer picture

to what institutional order flow
is and how IPTA moves price.

In the next lesson, we're going to go
into greater detail about how we can pick

the high and the low of the day with this
information and with the Asian range.