ICT Forex - The ICT ATM Method

it helps welcome back this teachings gonna be specifically dealing with the ICT ATM method you okay points of focus in this module we introducing the ICT ATM method the ATM in bearish conditions with targets and stop placement the ATM in bullish conditions with targets and stop placement okay introducing the ICT ATM method all right it's a standalone price action pattern the pattern capitalizes on stop runs you can find this pattern on the 60-minute chart it's relatively easy to spot and you can do it quickly and finding it it's pretty much a well it's a rejection

level okay now I'll show you what that looks like it's pretty easy to tree and wonderful thing is it's a complete trading model or setups okay so we're gonna look at the ATM in bearish conditions now once you take a look at this diagram on the right hand side okay and let that image burn in for a couple of minutes and as I'm talking to you this kind of like study what it's depicting and I want you to think about how when we start as traders generally the idea of support resistance is rather early in

our introduction to technical analysis and the problem I found when I first started as a trader is what support resistance levels do I use is I mean there's so many you could possibly have on your chart which ones should I be focusing on so my work has been trying to simplifying that so that way I could teach it to my children because of this I've been able to make pretty detailed tutorials for people around the world to learn from and I develop a little bit better ability to teach over the years doing it but initially

when I first started I gave a lot of information and it was overkill so this teaching is going to be rather brief but it's again very dense in its information so again looking at this diagram here I want you to think about what would constitute these turning points and I'm sure if you were to go through charts you could see patterns like this that are very similar in different time frames the time frame that I teach to find this pattern on is the hourly chart the reason why I like to look for it on the

hourly chart is because it gives me flexibility to draw down to a lower timeframe to refine risk to a smaller amount and while still keeping the maximum reward still in sight and also the hourly to me is clean enough in terms of a time frame it promotes a little bit longer term horizon for the set ups now a granite an alloy chart is not long term but you can see a lot of the levels you can see otherwise on a 4-hour or daily if you know what you're looking for so I kind of like one

in green in your mind and this teaching how we can use key support resistance levels and what makes these levels key so the first thing you want to do is you want to take your 60-minute chart and this couldn't work on any asset class okay so I'm gonna be using Forex for this discussion okay and the scope is in demo trading only but you can also do if you can also do demo accounts with futures contracts commodity stocks bonds and the like so you start with a 60-minute chart pretty simple straightforward you don't do you

don't to do a whole lot of top-down analysis because the pattern is self-sufficient so you've been looking for a 60-minute chart for a key high to form and what makes it a key high is you want to see it create this initial short-term high and then it runs through it then it breaks down okay it's going to break a swing low right here when price trades through that that's when it becomes a valid pattern it does not become a valid pattern until we get below this swing low here okay so imagine price action kind of

creating a check mark okay give it a little sort of short-term high here and it makes a check like that okay when that check mark gets surpassed by price action when it trades back up to that that's the setup okay that's what we're looking for so ideally what makes this setup stronger is if this whole price swing is part of a two-stage move in other words we have a short-term high that's ran out let me have a short-term high here and it runs out okay so this move should be ideally the second move up taking

on a short-term high that means we're pretty much overbought from a technical standpoint without the necessity of any indicators so we're focusing again on this short-term low here and it has to break below that again our two stage move higher I'm going to be waiting for price to retrace back to the swing low that forms prior to the key i forming now what makes this high key is the fact that we have taken out a short term high but though immediately after that short term high is violated it's broken down so in in essence this

is a break in market structure here and all we're doing is waiting for a retest of that same old support level now becomes resistance cell now when we see this in proper context we can classify and quantify real support resistance because we're incorporating the idea of a stop run above this short term high and then anyone that's long here we're going to have a stop below this low so they run through those stops price comes back up to this level here we've already rejected price above this short term high above number two so this level

here should promote selling and it should stay voff any real buying because we've broken market structure with this swing low with this drop down so this would be nice area to look for shorts and then once we have that what we look forward well in this entry pattern we have to frame obviously profit and risk so we first have to determine what's our potential profit what do we hope to make so we look for a swing low where in this case it would be sell stops resting below that short term low and we would target

from our entry point at this hole low down to that level just below the old low that's what we are aiming for that's our target if you will the risk is going to be defined by one or two pips above the key high okay or the rejection high price can go above this short-term low a little bit it's better if it doesn't but don't be a you know fraid if it goes above a little bit your stop-loss is up there to do its work it's a demo account don't lose you any sleep over it okay

so we're looking for the framework of this entry point to this as our objective and our stop-loss protecting our overall position okay so let's take a look of it in actual price action okay we can see price creating a short-term high here price runs through it we have no short-term high here price runs through that and then it rejects being above this short-term high and trades down below this low and price comes back up and retail three trades to it okay so this candle here violates it then we come right back up to it and

trades right into that same level as soon as that happens that is a sell scenario okay or shorting opportunity we're going to looking for a move below this low our risk is defined by the high set sixty five pips risk to make from this entry point down to the stops that's not bad you can take that trades none you barn Bernie okay if we drop down into a 15-minute timeframe we can take that same insight and here and zero in and use our trusty optimal trade entry pattern to reduce some of the risk so now

we can reduce that 65 pip stop-loss down to 20 pips notice also that we have a Fibonacci extension of 300% which takes us right below that low where our self stop target would be so now we're going to get look at an example of the bullish condition of an ATM again look at the scenario here in this crude depiction again we're scanning the price action on a 60-minute chart key low perform and a short term swing high broken to the upside that's gonna be this right here so we're looking for a low that's violated and

then we trade right back above the short term high right here so in other words what we're looking for it's kinda like a crooked little number seven okay and when that is violate on the upside when price comes back down to it that's what we're hunting so ideally this is going to be part of a continued swing lower we have a swing low that's violated here and then we have a swing low that's violated here so it's like a two-stage move lower of breaking old support old support so now we're really oversold technically without any

necessity of needing any indicators to tell us that so here's our to scale drop-down and we are we waiting for price to retrace back to the swing hi broken prior to the key lo forming again that's this here and we zero in right there that's our setup for a long so we'll look for our opportunity for training our potential reward again we're gonna be hunting by stops above this swing high here and the stop-loss is below here so our entry to our stop is our risk and our entry to the buy stops above here is

our potential profit or reward alright we'll take a look an example in the bullish condition all right so here is price action on an hourly chart you can see we have one support level broken another area of support broken and then we have an old low violated aggressively and then price trades back above it right here when we see that this retest of that old high that's where we're hunting along so if that's our entry and this is our stop loss we're risking 140 pips to make 225 pips by stops our our target here now

that may not be an ideal scenario for you and it may not be something that fits your risk appetite so we can now drop down into a 15-minute time frame and try to get that same 225 pips with a little bit lower stop-loss so here we are on a 15-minute time frame up zoomed in here in that same little area of looking to be a buyer we're gonna be now removing all of that risk down to 80 pips so we have a stop loss just below this old low here okay so we have this low

to this high here coming back down into that level so we're trying to give ourselves a little bit more of a better risk to reward model here right away we're almost at three to one so that's improved but watch what we do when we zoom in a little bit more we're going to actually down to a five-minute chart now and still see if we can get that 225 pips but with a smaller stop-loss okay so now we have a 5-minute chart again that same little area that green circle were zoomed in here and now I'm

doing this doing an optimal trade entry long running the fit from the body's lowest open or close to the highest open or close in this swing high I guess it's a beautiful little awesome trade entry long right at the same level we would be done looking for that scenario to unfold that and now we can reduce that stop down to 20 pips but still looking and hunting 225 pips or in this case becomes 11 to 1 reward to risk model so what we've done is we've looked for a key turning point we've identified the key

levels relative to runs on liquidity stops and we use the targets in the form of a stock run as well we can use the optimal trade entry zero in and reduce the risk but still keep the possible potential reward still the same as we would have used from an hourly setup so the two or 25 pips is still available to us with a 20 pips stop-loss now agreement got to hold it for a while but this is what it looks like on a 5-minute zoomed out and I'm getting that entire move but it takes a

little bit of time to get there but nonetheless this is how we can use the ATM method to get high probability setups trading key support resistance levels again to hunt 25 pips is available with 25th stop-loss I hope you enjoyed this presentation if you like these types of teachings you define more at be in a circle trader.com