All language subtitles for Lesson 1 - Basics _ Opening Range Concept EN

Hey folks.

Welcome back.

This is our first lesson in
ICT bond trading concepts.

Again, we're dealing with commodities,
so it's very important that I remind

you that I'm not a licensed CTA.

This is not traded advice and
everything that's being referred

to in this month's content.

And in these lessons are
referred to as a paper trade or.

Okay.

June, 2017, ICT mentorship, ICT
bomb trading, lesson one basics

and opening range concept.

Okay.

When I refer to the treasury
bond, what I'm referring to

specifically is the 30 year treasury.

Futures contract and the trade symbol
for this is the B and it's for the

30 year treasury bond and the trading
session that these concepts I'm gonna

be teaching this week are primarily used
for in analysis on the New York session.

And it begins at 8:20 AM to 3:00 PM.

New York time.

And the contract delivery
months for the treasury bond.

30 year note is March with the delivery
contract code of H June with the

contract code month of M September
delivery contract month code you

December delivery code contract month.

And the format when we use for
entering our charts or pulling them

up on in data, it's the symbol ZB.

Then the month code, then the last
two digits of the trading year or an

example, Z B U 1 7 4, September, 2017 is
contract of the 30 year treasury bond.

You can see that to the
right, in this image.

Treasury bonds, September
contract ZBU one seven at the top.

It trades on the Chicago board of trade
exchange and it is a futures contract.

And you can see the only delivery contract
missing here would be the March, 2018.

The amount per tick, minimum fluctuation
is $31 and 25 cents per month.

A forehand or full figure move equals 32
ticks or with referred to as 30 seconds 32

ticks movement equals $1,000 per contract.

Okay.

Bond opening range con.

Talking about nostalgic
things here, folks.

These are the things that I
cut my teeth on as a commodity

trader years and years ago.

All right.

So when we look at the bond market opening
range concept, the highest volume is going

to be seen between 8:00 AM and 9:30 AM.

New York time true day for the
bond market is 8:00 AM to 3:00 PM.

New York.

The opening range begins at 8:00 AM.

New York time and ends 9:00 AM.

New York time

narrow your focus,

the opening range between 8:00
AM and 9:00 AM tends to create

the bond market high or low.

It can be a run on stops
or a fair value set up.

In other words, a bullish or
block or bear shorter block or

trade down until liquidity void.

We're filling the fair value gap.

It is also the location for liquidity
pools to build around for the

stock market opening to be rated.

Let's take a look at a
couple of examples here.

Okay.

I have the treasury bond for
the September delivery contract.

2017, and this is the 15
minute candlestick chart.

And I have the 8:00 AM to
9:00 AM delineated here.

So in this area, what we look for
is the opening range or the high

and the low between those two
delineations and time she could see

here, we have a block of price action.

This is our opening range.

We have our opening range low
and our opening range, high

and price trades down below the low that
was formed between 8:00 AM and 9:00 AM.

This is a stop run in a
potential reversal notice.

The highest volume of the day
is between 8:00 AM and 900.

Notice also on the lower low that was
created post 9:00 AM, New York time that

lower, low was seen with lower volume.

So there was massive buying
taking place right after 8:00 AM.

But as price made that lower, low, it
did not see a large influx of volume.

All we're seeing there is a
movement towards running in this.

Sell stops for those individuals
that were correct in by buying

early, just having their stop
loss too close to the marketplace.

This is a volume divergence price making
a lower low that lower low should have

been met with a higher bar on volume.

This is a sign of impending
weakness for the down move.

So that means there's no
more selling pressure.

It's basically a run-on stops price moves.

Hi.

Find some support at the
opening range as well.

Opening range high and finds another
opportunity to see price trading higher

into the latter portions of the day.

Okay.

Another example, we have
our eight to 9:00 AM.

Block of price.

Action delineated, Mr.

Opening range.

Again, our opening range is to find
high and low opening range low.

We have a order block last two down
close candles inside of the opening

range and the opening range high.

And you see price trades
down into the bowl.

Shorter block supported around the
notion of the 8:00 AM to 9:00 AM.

Opening range con.

And price rallies away basis of a
little shorter block and notice as

the price makes the higher high going
into the 11 o'clock hour volume was

declining as price made a new high at 1
54 21 price makes a subsequent decline

back down into the opening range,
and then it goes into consult with.

The volume divergent here was
a early sign that the rally up

into the 1 54 21 was a weak move.

Therefore volume precedes price weakness
was seen after 1 54 21 had posted

ideally volume should have had a higher.

On its highest higher moving into 1 54 21.

So now we're working with commodities.

We have a more accurate
depiction of buying and selling

pressure with real volume.

The vertical line down here,
the green, blue and dark blue

lines are delineations of volume.

Okay.

Another example, we have our
eight to 9:00 AM delineate.

Our opening range,

opening range, low
inside the opening range.

The last damn close candle is bullish.

Shorter block.

There's two reference
points at that order block.

You had the initial test here
and we have the secondary one.

Either one would fit the bill.

This is a bull shorter block.

We expect a rally and notice the
largest volume was seen again

at between 8:00 AM and 9:00 AM.

New York time and price moves up
to run into the 1 54 26 level.

But notice that 1 54 26.

Look at the high that
was formed for 2:00 PM.

That high, that volume spike, there was
not seeing with a greater volume measuring

later on in the day in the evening time.

So when we treated the 1 54,
26, it was done so on light

volume, but it also reached above

with diversions in volume.

It reached above the opening range.

Hi.

So it ran the stops above that range
and failed to go any higher and traded

down and closed it in a fair value
gap, seen at the 1 54, 10 level.

So we have a blending of things that
we've already learned about in the

Forex portion of this mentorship.

And now we're blending other
things with specific commodities.

Now, when we look at the opening range
for bonds, uh, what I like to do is

I like to define the opening range
with much like I did the Asian range.

I look for the bodies,
but also incorporate Wix.

And then I also incorporate previous
highs and lows that are just to

the left of eight to 9:00 AM.

New York time notice that we have
the pies formed between 2:00 AM

and 12:00 AM to the left of the.

We have equal highs
there just below 1 54 19.

With that high, I'm going to incorporate
the WIC in between eight and 9:00 AM.

That's why that's mean defined there.

Notice also that reference point
becomes an issue for stop rating

later on in the evening during
the agent session time period.

When we look for
opportunities, we're blending.

Kind of like the Asian
range perspective in Forex.

We're looking for that same general
theme occur with the eight to 9:00

AM, time period in the bond market.

Now I like to see signals form
at eight 20 or after they can

occur as early as 8:00 AM.

And sometimes a little bit before there's
like a New York session open at 7:00

AM, but I generally prefer to see it.

Between 8:00 AM and eight 30.

So it basically the target time
is eight 20 or CME opening.

See, there's a blending of
that time element again.

So if we know that there's a strong
influx of New York traders coming

in at eight 20 New York time,
London traders are still awake.

They're still on, on the clock
looking to take some trading.

And if UK traders or
European traders want to be.

Participating in the treasury markets.

And it's a very big market.

It's not as big as Forex,
but it's very liquid.

And one of the wonderful things
about the bond market, it's the

least manipulated of all markets.

Now think about that.

I remember I made my career okay.

Focus in the commodity
markets with the bonds.

I liked the bond market because
it had the least in terms of

manipulation, you don't get a lot of.

Tom Foolery in that
market compared to others.

Now it does not mean that there
is a lack of manipulation.

It just means on par with
all the asset classes.

Generally you see the
least with the bond market.

Now, when we go into FMC or interest
rate based reports or approaching those

types of things, the bond market can get.

Wonky, it can kick a little silly, you
can do things that doesn't make any sense.

And the easiest way to avoid that is
simply stay out of that particular

asset class ahead of those news events.

Once the news event drops, FMC numbers
are released or the announcement

or rate decision, anything like
that, uh, non-farm payroll as well.

There's nothing, uh, you know, sparing
the bond market when it comes to NFP.

Uh, those environments are.

Much, like I've mentioned in other,
uh, teachings regarding the Forex.

You don't want to be trading around those
environments because it's, e-liquid, um,

the market's going to gap to wherever
the liquidity is and chances are it's

going to be against your position.

So it's just better not to be
trading at all around there's times.

So if we know out of the commodity markets
as a whole, if you want to carve out a.

Career as a one focused market trader.

Um, there is a plethora of opportunities
for trading the bond market.

It's highly liquid.

It's really nice when it's trending.

When it starts to move in one direction,
it generally stays in that direction.

Uh, when it goes into consolidation,
it can be a little choppy, but if

you know what you're looking at in
terms of fair value gaps or turtle

suits, Using equilibrium ideas.

There's certainly no reason why you
can't carve out a small little, uh,

you know, amount of pips or ticks in
this case for this particular asset.

Now, obviously everyone wants to
be a trader for the bond market.

They want to capture 32 ticks or
a full handle and try to capture

a thousand dollars per contract.

This market generally
doesn't have a large daily.

So, if you can capture anywhere
between five to eight ticks as

an intraday day trade, there's
certainly nothing wrong with that.

If you can get 16, 30 seconds,
that's $500 per contract.

That's a G that's a good day.

A large range day is when you get a full
handle or 32 ticks or $1,000 per contract,

they don't happen all the time, but
there can be sustained moves that create.

Opportunity, but that's not the normal.

So it's an asset class that allows
for low expectations in terms of

the daily range, it has respect of
liquidity pools, liquidity gaps, fair

value gaps, all the things that we
talked with, Forex, they still occur

in this asset class, but you don't see
a whole lot of the things like you do.

The Forex market where it can spike
down, do some really crazy stuff and

then go right back in the direction
you were, you were trading in,

will it run your stop sometimes?

Yes.

Will you sometimes see something
in the chart and it doesn't

materialize and goes the other way?

Yes.

Will you see order
blocks that don't go up.

Just go sideways.

Yes.

And reverse it for bear shorter blocks.

Nothing about this asset class.

Perfect.

But if four X was ever to go into
a meltdown or I was unable to trade

for X, I would go back to trading
bonds without skipping a beat.

It would be no problem at all for me
to go back to trading bonds, because

it's a very good trading market.

It can be swing traded.

It can be short-term traded.

It certainly can be day traded.

And when the conditions are
right, you can be in a positions

and hold them for longer.

There I say it's several months.

Uh, I've never been able to do
that personally, but it can be

done because it's like a currency.

Sometimes it trends very, very well.

So now you have a beginning
basis, point to start

looking@thebondmarketandyoucanpullupbarchart.com
and look at a 15 minute

timeframe for one day.

Pull up the ZBU one seven,
and as we go forward in time,

just go to the next month out.

And if we go into 2018, you're just
going to change the 17 to 18 or

whatever the year is respectively.

And you can keep a running journal
of what the bomb market's doing.

Now.

I'm going to counsel you that.

Just as a general daily procedure,
even if your intentions are never to

day trade or trade the bomb market,
say you never want to do it right now.

I promise you by looking at it
on a day-by-day basis, it will

increase your price action skills.

It will develop a greater appreciation
for this particular asset for

commodities, for interest rates.

And you're also going to start studying
this in relationship to what the

dollar's doing, what gold is doing
and the foreign currency system.

So, hopefully this has been a good
introduction to the bond market.

And one of the most basic concepts
I use when doing analysis on it,

and next lesson, we're going to
talk about split session rules.