ICT Intraday Templates & Setups for ES/NQ/YM | Michael J. Huddleston

There are six Intraday Templates and Trading Setups for the S&P (ES), the Nasdaq (NQ) and the Dow Jones (YM) - three bullish and three bearish ones:

• Two Session Up Close OR Two Session Down Close. (1.1 + 1.2)
• AM Rally and PM Reversal OR AM Decline and PM Reversal. (2.1 + 2.2)
• Consolidation AM Rally and PM Decline OR Consolidation AM Decline and PM Rally. (3.1 + 3.2)

1.1    Two Session Up Close (Trend Day ≈ 10% of all trading days)

If we are in the middle of an intermediate or long term price swing based on what we would see on the HTF (Higher timeframes = 4 hour, daily, weekly, monthly) chart, this is the classic scenario. When we start approaching HTF opposing arrays, this profile is less likely to occur. The daily range can go straight trough the lunch hour with very little consolidation whatsoever, depending on what the catalyst was that send prices higher it could be a very strong economic news release. Don't think we’ll always get the consolidation in lunch hour, if we move higher fast there is a chance they work trough lunch. PM session would be ideal if its symmetrical to the AM session.

• Institutional Order Flow (IOF): Bullish.
• AM Trend: Returns to a Discount Array then rallies.
• Lunch Hour: Consolidates with shallow retracements.
• PM Trend: Runs the Lunch Hour Lows [Sell Stops] OR Drops into a Fair Value (FV) Discount Array then rallies into Close.

 1.2    Two Session Down Close (Trend Day ≈ 10% of all trading days)

If we are in the middle of an intermediate or long term price swing based on what we would see on the HTF chart, this is the classic scenario. When we start approaching HTF opposing arrays, this profile is less likely to occur.

 

• Institutional Order Flow: Bearish.
• AM Trend: Returns to a Discount Array then declines.
• Lunch Hour: Consolidates with shallow retracements.
• PM Trend: Runs the Lunch Hour Highs [Buy Stops] OR Rises into a Fair Value Discount Array then declines into Close.
  

 

Tips for Two Session Up Close OR Two Session Down Close = trending days:
► When daily and 4H institutional order flow is bullish (two session up close)/bearish (two session down close).
► If we're in the middle of an intermediate term or long term price swing based on what we see on the HTF chart, then this is the classic scenario until we start approaching an opposing array on the 4h/daily/weekly. PM session would be ideal if its symmetrical to the AM session (measured move).
► The daily range can go straight through the lunch hour with very little consolidation whatsoever, depending on what the catalyst was that send prices higher it could be a very strong or surprised economic news release.
► Don't think we'll always get the consolidation in lunch hour, if we move higher fast there's a chance they work through lunch.
► ► How to trade: ICT always looks for SMT (Smart Money Tool / Smart Money Technique) between the 3 indices at the lows/highs on both sessions.
AM SMT: compare London lows/highs and 9:30 am lows/highs.
PM SMT: compare lunch lows/highs and the high/low formed from the 13:00 candle. One has to diverge.
AM session hold till about 10:30-11:00 and also look for 15m PD arrays.
PM session: besides the SMT we can also return to FVG or OB formed in lunch hour.

2.1    AM Rally PM Reversal (Typical Day ≈ 25% of all trading days)

Price is yet to fulfill a completion of a bullish run, but very close to where we are presently there is a higher time frame premium PD (Premium/Discount) array. The session will start off bullish until it hits the HTF PD array which causes the intraday market reversal.

 

• Institutional Order Flow: Bullish - under HTF Premium-Discount Array.
• AM Trend: Returns to a Discount Array then rallies.
• Lunch Hour: Consolidates with shallow retracements.
• PM Trend: Runs the Lunch Hour Highs [Buy Stops] and reverses into Close OR Runs the Intraday High and then reverses into Close.
• PM Trend can resume higher if AM session Discount = HTF.

 

2.2   AM Decline and PM Reversal (Typical Day ≈ 25% of all trading days)

 

• Institutional Order Flow: Bearish (IOF) - above HTF Discount Premium/Discount Array.
  AM Trend: Returns to a Premium Array then declines.
• Lunch Hour: Consolidates with shallow retracements.
• PM Trend: Runs the Lunch Hour Lows [Sell Stops] and then reverses into Close OR Runs the Intraday Lows and then reverses into Close..
• PM Trend can resume lower if AM session Premium = HTF. 

 

Tips for AM Rally PM reversal (bullish)/AM Decline PM reversal (bearish):
► When daily and 4H institutional order flow is bullish/bearish and price is near a 4H/daily TF PD array, so this model is the completion of a run. AM session is bullish/bearish until it hits the HTF pd array which causes the intraday market reversal.
► In the AM scenario you first drop into a 1H or 4H discount (bullish) / premium (bearish), then rally into HTF PD array (4H/daily/weekly).
Smart money reversal (SMR) - PM trend could either

- Run out the AM high/low and then rally or make a LH when it reverses. Just a run above a STH is also possible.
- Be just a retracement into the AM range and then continue HTF trend or really reverse on HTF. How do we know which one the PM trend will do? The PM session can resume higher/lower (reversal) if the AM session premium array equals a higher timeframe (4H, daily, weekly, monthly) premium array, it can go back into that array in PM and recapitalize that and then go lower and resume lower. If that’s NOT the case we can expect price to continue until we reach that HTF array.

► ► How to trade: ICT always looks for SMT between the 3 indices at the lows/highs on both sessions.

AM SMT: compare London lows/highs and 9:30 lows/highs. PM SMT: compare lunch lows/highs and the high/low formed from the 13:00 candle. One has to diverge. So in the bearish scenario: If the AM high around 10:30am EST but often closer to 11:00 is below a 15m or the PD array, then we're going to be anticipating, before it even happens, outside the London lunch around 1 pm an initial rally into the 15m PD array followed by a HTF reversal. So in the AM session we're going to be holding our trade until there.
PM SMT: try to hold until 15:00 at least. If price is in the premium of the AM dealing range, we could see price continue lower/higher (when the premium array is not a HTF premium array), otherwise price will reverse there.

 

3.1    Consolidation AM Rally PM Decline (Trading Range /Neutral Day ≈ 35% of all trading days)

If unsure of what the IOF of the current day is or where we are relative to Premium/Discount on Daily/4h, chances are we likely see this scenario - especially if there is no high/medium impact news expected during 10am or later in the day.

• Institutional Order Flow: Neutral.
  
• AM Trend: Returns to a Discount Array then rallies OR expands Higher from Equilibrium to run London session Buy Stops.
• Lunch Hour: Consolidates with shallow retracements.
• PM Trend: Runs the Lunch Hour Highs [Buy Stops] and then reaches for Day's Sell Stops OR Runs the Intraday High and then reaches for ID/London session Sell Stops. PM Trend can simply consolidate into Close after Lunch Hour.
  

3.2    Consolidation AM Decline PM Rally (Trading Range / Neutral Day ≈ 35% of all trading days)

If unsure of what the Institutional Order Flow of the current day is or where we are relative to Premium/Discount on Daily/4h, chances are we likely see this scenario - especially if there is no high/medium impact news expected during 10am or later in the day.

• Institutional Order Flow: Neutral.
• AM Trend: Returns to a Premium Array then declines OR expands Lower from Equilibrium to run London session Sell Stops.
• Lunch Hour: Consolidates with shallow retracements.
• PM Trend: Runs the Lunch Hour Lows [Sell Stops] and then reaches for Day's Buy Stops OR Runs the Intraday Low and then reaches for the Intraday London session Buy Stops.
• PM Trend can simply consolidate into Close after Lunch Hour. 

Tips for Consolidation AM Rally and PM Decline / Consolidation AM Decline and PM Rally:

► In this scenario Institutional Order Flow is neutral or unclear where we're at relative to premium or discount on 4H or daily. This scenario happens a lot in index trading which can be frustrating if you don’t know the mechanics behind it. When there's a strong directional bias behind the marketplace or the underlying meanings of the market suggest higher/lower prices, DO NOT look for this scenario. This is not seek and destroy (NFP), this is simply consolidation. This happens when there’s a lack of news or trend.

AM: price returns to a premium/discount then rallies OR after the first hour of the opening range or expands higher from EQ to run SSL/BSL (Buy Side Liquidity/Sell Side Liquidity)from London or intraday.
PM: 2 scenario’s —> 1. Run on lunch hour highs/lows then rally for AM session BSL/SSL or 2. run intraday high/lows and then run for intraday or London SSL/BSL.

► ► How to trade: Which one is it going to do, lunch highs/lows or AM SSL/BSL? We are going to be looking for a 15m PD array inside a 4h/Daily PD array. So the HTF confluence is the catalyst for the reversal. If that PD Array was already reached in AM, PM will just run out lunch hour highs/lows.

If the PM session takes lunch hour SSL/BSL or AM session SSL/BSL is dependent on the AM session BSL/SSL. If these lows/highs reached into a 15m PD array inside a 4h/Daily PD array PM will just run out lunch hour highs/lows.

How to know if the PM session will run lunch or intraday highs?

HTF PD array hit in AM session = Lunch highs likely to be run.
HTF PD array NOT hit in AM session= PM session  could run the intraday high, hit the HTF Premium array, and then reverse.

 

Quoted from:
Michael J. Huddleston (2017) - ICT Mentorship Core Content - Month 10 - Index Futures - Projected Range & Objectives. (video) 

 

See also:

 Darya Filipenka (2023) - ICT Mentorship Core Content - Month 10 - Index Futures - Index Trade Setups.

Darya Filipenka (2023) - ICT Deep Dive Into Institutional Order Flow.

 Michael J. Huddleston (2015) - ICT Intraday Trading Templates.

The ICT Judas Swing | Michael J. Huddleston

The » Judas Swing « is an engineered false price run meant to trap traders into taking positions in the wrong direction. Traders can use this to catch the high or low of the day and sometimes even the week if the proper narrative is in play. A Judas Swing can happen either in the London or in the New York session; however it is most common during the London session. During the London session Judas Swing price action usually trades above or below the week's opening price and manipulates buy or sell stops. The Judas Swing usually runs into keys levels such as the previous week's, the previous day's High/Low and the previous session's High/Low, into premium/discount levels, and into imbalances (Fair Value Gaps, FVGs).

 

The concept of a Judas goat leading sheep to slaughter can be applied to price action in trading.

The London session Judas Swing can set the session's or the day's high or low. 

This will come as a quick spike price action hunting for buy or sell liquidity. 

 

► The London Session Judas Swing - Bearish Scenario

The London Judas Swing refers to a false move in the market during the London session that tricks traders into believing the price will continue in a particular direction but then reverses. Focus on trading and identifying the London Judas Swing between New York midnight to 5 AM (New York Local Time).

 

• Mark Highs and Lows of the Asia Session: Identify the highest and lowest price levels reached during the Asia session.
• Mark New York midnight candle opening: Identify the opening price of the candle at New York midnight (NY 00:00).
• Check price trading above New York midnight: During the London Kill Zone (typically from the start of the London session until around 5:00 AM NY local time), check if the price is trading above the opening price of the candle in New York midnight.
• Check for Liquidity Grab at Asian high: If the price is trading above the New York midnight opening during the London Kill Zone, check for a liquidity grab at the Asian session high.
• Identify Market Structure Shift: Look for signs of a market structure shift, indicating a potential change in the market direction.
• Find a favorable entry point (e.g. a Fair Value Gap): Based on the market structure shift and liquidity grab, identify a favorable entry point that aligns with the anticipated market direction.
• Target: In an ideal scenario, set the target at the Asian session low or any visible sell-side liquidity, aiming for a profitable trade.

► The London Session Judas Swing - Bullish Scenario

Here’s a step-by-step breakdown for the bullish scenario, focusing on identifying a liquidity grab at the low of the Asian session during the London Kill Zone, finding the Market Structure Shift (MSS), determining a favorable entry point (FVG or IFVG), and setting the target at the Asian session high or buy-side liquidity:

 

• Identify Liquidity Grab at Asian Session Low: During the London Kill Zone (between New York midnight to 5 AM NY local time), observe if the price trades above the New York midnight opening and check for a liquidity grab at the Asian session low.
• Find Market Structure Shift (MSS): Look for a significant change or shift in market structure, such as a clear indication of a potential bullish movement.
• Determine favorable entry (FVG or IFVG): Based on the observed market structure shift and liquidity grab, identify a favorable entry point (FVG) or an improved favorable entry point (IFVG) that aligns with the anticipated bullish movement.
• Set Target: In this bullish scenario, set the target at the Asian session high or any visible buy-side liquidity, aiming for a profitable trade.

► The New York Session Judas Swing - Bearish Scenario

• Time Frame: Focus on trading from 7:00 AM to 9:00 AM (New York Kill Zone)
• Price Condition: Confirm the price is trading above 7:00 AM and the NY Opening.
• Buy Side Liquidity Hunt: Wait for a move higher to trigger buy orders (liquidity hunt).
• Market Structure Shift (MSS): Look for a significant shift indicating a potential bearish direction.
• Favorable entry (FVG or IFVG): Identify a strategic entry point aligning with the expected bearish movement.
• Target: Aim for sell-side liquidity or visible sell-side order clusters.

► The New York Session Judas Swing - Bullish Scenario

• Time Frame: Focus on trading from 7:00 AM to 9:00 AM (New York Kill Zone)
• Price Condition: Confirm the price is trading below 7:00 AM and the NY Opening.
• Sell Side Liquidity Hunt: Wait for a move lower to trigger sell orders (liquidity hunt).
• Market Structure Shift (MSS): Look for a significant shift indicating a potential bullish direction.
• Favorable entry (FVG or IFVG): Identify a strategic entry point aligning with the expected bullish movement.
• Target: Aim for buy-side liquidity or visible sell-side order clusters. 

Michael J. Huddleston (Dec 10, 2017):

Understanding the ICT Judas Swing.
 

Ritchie Naso, a 40-year veteran NYSE floor trader:
» Algorithms control the stock market. «

 

Reference:

Michael J. Huddleston (2023) - ICT Daily Range Profiles.

 Michael J. Huddleston (2023) - ICT Weekly Range Profiles.
M. Hamza Akhtar (Oct 02, 2023) - ICT Judas Swing: Smart Money Trap.
DayTradingRauf (2023) - ICT Judas Swing and Market Protraction.

Daye (2023) - The Quarterly Theory. 

 

 

Pump and Dump Patterns after Major News Release | Stacey Burke

 

Position yourself AFTER Major Red News Releases (NFP, CPI, PPI, PMI, FOMC etc.) with 

either a Pump & Dump or a Dump & Pump trading setup for 25, 50, 75 or more pips.

Reference:
Stacey Burke (Mar 14, 2023) - Pump And Dump Day Trading Setups (AFTER CPI News Release).

 

See also:
Major Red News Calendar.

Stacey Burke Trading - YouTube Channel: Pump And Dump Day Trading Setups.

Stacey Burke (2022) - Best Trade Setups Playbook. 

TPR (Feb 13, 2023) - Jesse Livermore's Arithmetic of Pump & Dump Patterns.

The Inner Circle Trader (Mar 14, 2023) - Real Money, Real People - ICT Student Kyle. 

Trading Inside or Outside the Daily and Weekly Range | Stacey Burke

When a market opens outside of the previous day's range and then auctions around the open, one's first impression is that there is no directional conviction present. In reality, the mere fact that the opening is beyond the previous day's range suggests that new other time frame activity has caused price to seek a higher or lower level. Given that the market has opened out of balance, there is a greater chance that directional conviction will develop than if the market had opened and auctioned within the range. An Open-Auction outside of range has the potential to be a big day, while an Open-Auction within value usually lacks conviction.

 

There are only three things price can do:
1. Breakout from a Range and Trend.
2. Breakout from a Range and Reverse.
3. Trading Range between Highs and Lows.

[...] In the large majority of cases, activity during any given day has direct and measurable implications on the following day. It is only on the relatively rare occasion when a market moves extremely out of balance that there is no correlation between two consecutive days. Understanding these implications enables a trader to more successfully visualize developing market activity.

The salient concept here is market balance. The relationship of the open to the previous day's value area and range gives valuable clues to the market's state of balance and what kind of risk/opportunity relationship to expect on a given trading day. In short, the greatest risk and opportunity arise when a market opens outside of the previous day's range. This indicates that the market is out of balance.

When a market opens out of balance, the potential for a dynamic move in either direction is high. Conversely, a market that opens and is accepted (auctions for at least one hour) within the previous day's value area embodies lower risk, but also less opportunity. The acceptance of price within the previous day's value area indicates balance, and therefore reduces the potential for a dynamic move.

Quoted from:

James F. Dalton, Eric T. Jones & Robert B. Dalton (1999) - Mind over Markets.

 

[The Value Area is a range where approximately 70% of the prior days volume traded. 

The range is derived from one standard deviation on either side of the mean which is roughly 70%.]

 

 Reference:
Stacey Burke (Mar 08, 2023) - Best Scalping Day Trading Secret For Beginners - How To Scalp Forex & Stock Market. 

 

See also:

Stacey Burke Trading - YouTube Channel.

Stacey Burke (2022) - Best Trade Setups Playbook.

GhostTraders (2022) - External and Internal Range Liquidity. 

 Aksel Kibar (2022) - Breakouts that are NOT followed by Pullback.
Aksel Kibar (2022) - Breakouts that are followed by Pullback.
Aksel Kibar (2022) - Breakouts that are followed by a hard Re-Test of Pattern Boundary.

 The Inner Circle Trader (2017) - Intro To ICT Optimal Trade Entry.

Al Brooks (2012) - Trading Ranges.