All language subtitles for Lesson 2 - Split Session Rules EN

Okay folks.

Welcome back.

This is another discussion on commodities
is everything we refer to in this lesson.

And in this month, 2017, June
content is referring to you

specifically as a paper trade only.

Okay folks, June, 2017, ICT
mentorship, ICT bond trading, lesson

number two, split session rules,

Katie bond, split session roles.

Now, before we get into this, I
understand that most of you are.

In this mentorship to learn how
to trade with my concepts for X.

And there's a lot of time of day
references for Forex and commodities.

Have a unique time of day element as well.

I'm going to teach you the way
I interpret price action for my

analysis for the bond market.

There's some similarities, but there's
some slight deviations that, as I

mentioned at the beginning of this
mentorship, when we get into the

commodity content, there are time of day
studies, but there's a small variance.

What you normally expect to see in,
for instance, the foreign exchange

market, there's a small overlap, but
then there's a small deviation for

what we would normally expect for time.

Traditionally overnight
sessions will have an impact.

And that's traditionally
seen as the London session.

New York am session is defined by 8:00 AM.

New York time to noon, New York time.

The New York PM session.

Is defined by noon, New York
time to 3:00 PM, New York time.

Now, before I go any further and
just understand that while we are

generally familiar with the New York
session or New York open kill zone,

and there's a London close kill zone.

And then the daily range we understand
and can trade always late as 2:00 PM.

There's a little bit of overlap,
but we're going to actually

define it in two sessions.

So.

Well, I'm teaching here.

The analysis concept should be focused
primarily on the New York session hours.

While if you're going to graduate into,
maybe you go through the lessons this

week and you fall in love with bond
trading and you say, you know, the

heck with four X, the fact the heck.

You know, stock trading and,
uh, the other asset classes,

I'm going to be avant trader.

Well, yeah.

Great.

That's, that's wonderful.

If that's what you become and you find
your niche in the marketplace then great.

That means that you've been a
success going through the mentorship,

but you can trade overnight
or during the London session.

The ZB or 30 year treasury bond and
trade with similar things that we

talked about in regards to the London
open, I would counsel you to use the

information that is seen by overnight
trading during the London session

to look for stops, liquidity voids.

Fair value gaps, those types of
things, and focus primarily on

trading the New York session.

As we mentioned in the previous
lesson, one bond concepts, the largest

volume is seen between eight o'clock
and nine o'clock in the morning, or

generally before the equity's open.

So between 8:00 AM and 9:30 AM,
New York time, that's the largest

influx of purchasing and selling
of the treasury bond futures.

The am session has a built-in
advantage because it generally will

see the largest volume of the day.

That means it's generally going to form
the higher, low of the New York session

or the blending of, or total range
of the true day for treasury bonds.

The PM session generally will
have a continuation or reverse.

And then the other thing
is a consolidation.

So generally you're going to see a move
more often than not in the am session.

I tried to focus when I was doing
commodities only as an asset class

focusing primarily on eight 20
in the morning to 11 o'clock in

the morning, but it was like my.

Kill zone, if you want to call it
that when I was trading the E-mini S

and P the S and P futures, big boy,
and the commodities, the currencies,

and the, um, the bond market.

That was my work day.

And when I wanted to be deviant or
really push my luck, I would trade

the PM session and the PM session
for the treasury bond market.

It seemed here as noon to three.

Training days can see the complete
trading day be one-sided in

both the am and PM sessions.

So in other words, the opening
around 8:00 AM, 8:20 AM.

New York time creates the low
of the day and it can trade

all the way up to 3:00 PM.

One-sided completely bullish
through am NPM trend.

Those sessions together create the full
daily range training days can start also.

With one of the sessions being,
for instance, the PM session.

For instance, there could be a, uh, late
afternoon FMC like we have tomorrow.

Uh, the bond market could be consolidated
during the am session and then go

into a trending environment in the PM
session that carries over and what we

call a runner where you can have the
move continuously go on into the next

trading session or the session after.

Consolidation days can see opposing
directions in the am and PM sessions, or

it can see one session produce a sling
and the other be quiet or consolidate.

So when we look at two o'clock in the
morning to 5:00 AM we understand that

is the traditional London session.

Okay.

So if we're looking at price, in
terms of the bond market, we can

refer to what overnight price.

Has seen between two o'clock
in the morning at 5:00 AM.

That'll give us where our stops are.

Overnight stops, overnight
liquidity voids, fair value gaps.

Um, any measure of PDA rate
that we would normally use in

the foreign exchange market.

We would look for that to be
found in this specific reference

point in time while we're not
actively trading them the session.

And I don't really want to trade
or imply that you should be trading

along the session with the bond.

We refer to it always between
these two reference points, two

o'clock in the morning at 5:00 AM.

The am session or morning trend
is defined by 8:00 AM to noon.

Now, sometimes the 8:00 AM to noon session
can end early around 11:00 AM, which is

the traditional London close time period.

London, European traders
will be looking to close up.

They made their money in the morning
and they moved to the sidelines.

Doesn't mean it's trailing the trading
days ended or there's no more opportunity.

It just means that we're
going to see a reduction in.

A lot of the European and UK
traders are going to close up shop.

Like I said, they're going to stop
trading for the day and then you're left

with the north American traders only,
but we're also encountering what is

referred to as New York lunch around 11
o'clock to one o'clock in the afternoon.

So while I'm defining it in general
terms, noon and the am session,

just know that it can end earlier
around 11 o'clock at night.

This is your New York session
am trend or New York am session.

The next portion of the daily range for
bond trading is the New York PM session.

This is seen by delineating 12
noon, New York time to 3:00 PM.

New York time.

Again, this is the New York
PM session now generally.

If you have a runner, it means
the market's made a significant

higher, low in the morning session.

Uh, you can see follow-through equal
distance measured, moves that type

of scenario, and whatever usually
happens in the morning session

generally is seen in quicker terms
or less time in the PM session.

If there's a large degree of the
average daily range, if you will.

Seen in the am session.

That means that the PM session
will be rather abbreviated.

So that way we can use this information
is if we know that the lion's portion

of the day has been fulfilled by the
am session, and we are going flat

before New York lunch, we could avoid
trading the PM session altogether.

Don't come back for the second portion.

Just be happy with what you
made and go home in the black.

All right.

So let's take a look at the
examples we had in the first

lesson and define the price action
by way of split session roles.

Kate can see between two o'clock
and five o'clock in the morning.

There was a London open trade here,
trades back up into closes the fair value

gap and sells off going into what we
understand classically as the New York.

In Forex, but now we have to apply the
bond rules, which is 8:00 AM to 9:00 AM.

We have our opening range, which
we defined in the first lesson.

And then we saw a subsequent lower
mood, which is the equity's opening

runs that opening range low, and
that's all occurring during the am

session for the morning trend price
rallies up into the 11 o'clock hour.

And European traders go home.

They square positions, retracement
takes place right down into noon.

So the retracement ends at noon and that
begins the PM session, which we see here.

This is the afternoon trend
or the PM session for bonds.

Price makes the high today ahead of, to.

New York time and he doesn't
consolidation at 3:00 PM.

So we can see the daily
range as defined by 8:00 AM.

Typically is a bullish day.

We can see the down move,
which is a Judas swing price.

Rallies away comes back.

Find some support at the opening
range and around that 1 53, 27

level or thereabouts, and then rise
again, making the high the day.

I head up two o'clock in the afternoon
and in price goes into retracement

and then consolidation at 3:00 PM.

Traditional power, three,
just defined in terms of the

split session rules for bonds.

Okay.

We have another example here and again,
these are the same examples I used in

lesson one, but we're just defining in
split session roles for your benefit.

Again, we have a price
swing in the London.

Price makes a high trades down
into the eight to 9:00 AM session.

Notice it's taking out the load
that was formed in the London open.

So the am session for the bond
market trades down below the London

session, lows creates a failure.

Swing moves into a board
shorter block at the 1 53 29.

Price goes into expansion through the
entire morning trend or am session into

noon where it creates a market reversal
profile and reversal takes place where

we have the split session roles, seeing
the am session going higher, then the

PM session going lower, both offering
opportunities, one for buy one for us.

And then after three o'clock
price goes into what we would see

classically as a consolidation
as defined by true day in Forex.

Okay.

We have another example here.

Price makes that high in the two o'clock
hour and as long as the session price

trades down, and then notice what's
happening here early at 7:00 AM.

New York open kill zone in the forks
market price rallies up and clears out

the highs, the equal highs around 1 54 19.

Going into the eight o'clock hour
price makes that high sweeps, the

London high trades down aggressively
and blows out the lows that was

formed in the London session and the
early seven o'clock in the morning.

Between eight o'clock and
nine o'clock in the morning.

So at nine o'clock, it
creates the level of the day.

True to form donate am.

Session price has a large opening range.

So when there's an, a large opening
range, we want to start looking for

retracement ideas or fair value ideas.

In other words, bulls shorter blocks,
fair value gaps to be a buyer or seller.

And in his case, it was bullish because
price traded down and took out the

liquidity below the lows at 1 54.

And ran a stops on the buy
stops in the London highs.

So it's worked both sides of the
marketplace, but more specifically,

it trades down, creates the Judas
swing and it creates a turtle suit,

which is a move below the 1 54 0 2
level in the opening range, eight

o'clock to nine o'clock in the morning.

New York time that down close
candle creates a bullish

shorter block at that 1 5402.

And that is what is seen for
the move taking place for the PM

session or the afternoon trend and
price starts to rally away there.

Now you're probably saying,
what does it look like?

You're responsible to move there.

Doesn't require a whole lot of
move for the bond to pay you.

So you have a bull shorter block during
the am session or a turtle soup either.

Or the turtle soup is a buy below 1 5400.

Which is the six o'clock seven o'clock
in the morning, lows or price trades

back above that 1 54 0 3 level.

And it comes back down into divorce order
block for the PM session, you can take

that trade or during the am session price
trades down into fills the fair value

gap at 1 54 0 3 into 1 54 0 2 ahead of.

The 10 o'clock hour.

And this is all during the equities
open and price rallies from 1

54 0 2 all up into 1 54, 10.

So it's an eight tech move, eight
times $31 and 25 cents per contract.

That would be your am session mood.

Now I know some of you're thinking,
well, that doesn't seem like a lot.

You can find these traits several
different times a week, let your highly

selective by what you're looking for.

And.

But the better trade
was in the PM session.

And you can take portions off once.

The fair value gap is filled between
the highs at 1 54 10 during the am

session and the last up-close candle
during the eight o'clock hour.

So that fair you got closes in at 1 54 13.

There's your profit there.

You would take profits in net position.

So 1 5402 to 1 54 13.

So you would see an 11 tick
move for the PM session.

And if you left something on as a
runner, you could have captured a little

bit more move to run out the opening
range high at 1 54 21 later on in

the evening during the agent session.

So by having these ideas applied to price
action, we defined the bond market trading

day in a specific criteria as defined.

But we're also including everything we
learned in terms of PDA res institutional

order flow and other time of day
studies as it overlaps with Forex.

So you can see how there's a blending
of how the markets work together.

They still respect time, but by applying
these concepts and then thinking about how

it dovetails nicely with foreign exchange,
you'll start to see there's a synergy

that takes place between the asset class.

And how bonds influence other markets,
but you're not going to appreciate

that until you start doing a day by day
basis and study and keeping a journal of

the bomb market as we're showing here.

So what we've covered so far is the
opening range concept, the basics of

what makes a bond market valuation
in terms of its movement, the time

of day that we'd like to study it and
specific generic terms of what type of

moves take place at these times of day.

Now the next lesson is going to be in
trading and consolidation days and how

we can look for small moves before we
get to those trending days where there's

a big, large range available until then.

I wish you good luck and good trading.