ICT Daily Range Profiles | Michael J. Huddleston

(I) The Classic Buy Day or Sell Day Template

This is the best template to make money since it is a wide range trending day that unfolds mostly on Monday, Tuesday and latest on Wednesday during the London session. The New York session will eventually give a retracement to continue with the trend that was set during the London session. The daily range will last for 7 to 8 hours once the profile is established.

 

▪ Always buy when the market drops at the right time of the day at key support level (buy below the opening price).
▪ On a buy day, if price starts by trading above the opening price, do not fall for that and wait for it to trade below the opening price.
▪ The faster the move to the support the good the trade, (it will look stupid and scary but buy when you see a fast move down to support).
▪ The distance from the open price to support will be 15 – 30 pips on average. If the move from open price to support in London session is more than 30 pips, wait for New York trade.
▪ If you can’t trade London session you can trade New York session to get in sync with London trade.
▪ Always take small profit of 20 – 30 pips at 12:00.

▪ The sell template will be vice versa of the buy template. 

 

Mostly it will give a rally or drop from the daily opening price to the low or high of the day during the London session. The trend usually lasts into 11:00 EST.
 

(II) The London Swing to Z Day Template

This template is found in the middle of a larger price swing when the trend is exhausted after a large explosive move. It is a narrow range day and ideally occurs on Thursday. 

 

▪ This will unfold in the middle of a Larger swing (strong move has minor to no retracement, most of the time price will consolidate after a strong or very big move and this template will unfold).

▪ If you had 2 – 3 days of big move, expect a pause in price.  

Price will initially drop below the opening price, then run above the opening price and go back to the range into consolidation. It first appears to unfold as the Classic Buy or Sell Template. But if it continues consolidating, do not look for continuation into the New York session. Take profits.
 

(III) The London Swing to New York Open / London Close Reversal Template

The bullish version of this template always begins like a Classic Buy or Sell template with a decline below the opening price before price starts rallying. Once price drops, a buy entry forms, price rallies to a higher time frame Point of Interest (POI). If this happens during the New York session, it indicates a classic market reversal. 

▪ The reversal market profile is one that typically forms as a Key Reversal Day.
▪ It will form a sell day during a bullish Asian, London and Possibly into New York session but fails to hold its rally and reverse lower.
▪ The swing up will likely be the right shoulder of an inverted head and shoulders top on higher time frame or swing up to the higher time frame OTE.
▪ This move will many times look just like classic London open buy day.

▪ Many times at 18:00 GMT or even later the market will eventually consolidate into the new trading day.
▪ The reversal market profile will form a buy day during bearish Asian, London and possibly into New York session but fails to hold its lower price slide and reverse higher.
▪ The swing down will likely be the right shoulder of an inverted head and shoulders bottom on higher time frame or swing down to the higher time frame OTE.
▪ This move will many times look just like classic London open sell day.

The template is used to either reach for a bearish order block on a higher time frame, for a turtle soup raid or to close a range. On a bullish day it will first create an initial low of the day during the London session, run up and create the high of the day during the New York session around the London Close, then run back down and clear the initial low that was created during the London session. Ideally it can pan out after the market is in exhaustion based on the higher time frame's dominant trend.
 

(IV) The Range to New York Open / London Close Rally Template

Generally this template is to be expected on days with high or medium impact news events like interest rate announcements, etc. Ahead of these events price will remain in consolidation during the Asian and London sessions. Lows will be cleared initially and after the news price explodes into a directional move.

 

▪ This pattern will unfold most often during the NFP, FOMC and Interest Rates Announcements.
▪ Before the News price will break London Lows and rally after News Release.
▪ Always remember to see cross pairs of the major pair you are trading when this template unfolds.
▪ If Dollar is dropping and EURUSD pair is consolidating EURJPY will be buying.
▪ If Dollar dropping, GBP is buying and EUR is consolidating, wait for GBP to hit resistance level and EUR will give nice range to New York Open/London Close rally setup.
▪ If majors are consolidating but crosses are moving, wait for the crosses to hit key Support/Resistance levels and come back to majors and trade to the direction of the crosses.

 

  

(V) The Consolidation Raid on News Release Template

Unfolding during the New York session on days with high impact news, mostly FOMC press releases. During and shortly after the news old highs and lows of prior consolidation levels will be taken out. Ideally buy when a low is taken out and sell when a prior high was breached.

 

▪ This pattern will unfold most often during the NFP, FOMC and Interest Rates Announcements.
▪ After opening price, market will consolidate before the News.
▪ During the News releases price will drop to induce traders and take stops (this move might not be that big below the consolidation but it has to break the consolidation).
▪ After clearing the stops and inducing, price will move into true direction.
▪ You have to identify Key support level or order block below the consolidation.
▪ See if price will reject at support/resistance within 5 minutes after News release, if it won’t reject then leave the trade because you might be wrong in your analysis.

 

 News are used to Inject Volatility. One of the most difficult ways to trade is to try to trade the News Releases. The Internet is littered with so-called robots or programs designed to quickly give you trading profits on the knee-jerk reaction to the news. This is pure gambling. We can never know for sure what the numbers will be in the reports, we don’t guess. However, we can wait for the release and watch the reaction and many times a signal will form within 5 minutes after the news release. Many times price will trade counter direction to the intended news hawks. 

 

 (VI) The London Swing to Seek & Destroy Template

This is the kind of day that won’t make you money. The Market Makers clear intention is to take out both buyers and sellers. Initially it would give you a London Open opportunity and setup, but very likely that won’t come to fruition. The narrow range zig-zag template lasts throughout the New York session and will oftentimes create an inside day. The template is usually applied in the middle or at the end of a larger price swing. 

 

▪ This template will unfold most often after a big move/swing or at the end of the price move (support/resistance).
▪ It is better to trade when a pair is in the middle of the range knowing it is going to support or resistance rather than trading a pair that is already in support/resistance because we don’t know if is going to hold the Support/Resistance or break it.

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

See also:

Michael J. Huddleston (2017) - ICT Weekly Range Profiles & Intraweek Trading Templates.
TPR (2022) - The Daily & the Weekly Market Maker Cycles & ICT Intraday Trading Templates.

TPR (2022) - Daily Range = Accumulation + Manipulation + Expansion + Distribution (AMD).

TPR (2022) - Richard D. Wyckoff's Accumulation & Distribution Schematics. 

L.H. Weston - Gann’s Professor | Hans Hannula

I've been told that Gann was very private about his office. He absolutely forbid anyone from entering it. He wanted to protect his secrets. But one document he kept in his safe. That document was a manuscript by Professor Weston of Washington, D. C. It was written in 1921 (part 1) and 1923 (part 2), four to six years before Gann published his Tunnel Thru the Air, Or Looking Back From 1940, Tunnel Thru the Air contains, in coded form, Gann’s explanation of how to use planetary cycles to trade stocks and commodities. 

 

He told his own family that it was all they ever needed to learn his market secrets. Many Gann students have labored very long and hard (yes, me, too) to decode Gann's writing. Gann loved to write in the abstract style of the Biblical mystics, whom he admired. Much of what is written in the Bible is information about planetary cycles. It is hidden in census counts, symbolic imagery, and heavily coded to escape notice of the casual reader. While one can dig out this material, it takes time, an ephemeris, and a lot of work. Gann had it much easier. What you are about to read is the paper Gann kept in his safe. 

 

Take your time and read it carefully. It’s one of the best papers ever written on the market. 

After you read it, I'll point out some interesting things about it.

 

HERE

 

[...] First, this is clearly the foundation of Gann’s use of the 10 year cycle, and its multiples. Second, this is historically a fairly early use of Fourier sequences, and far more mathematical than just using financial astrology. This is no surprise, since it is well known that Gann was a very good mathematician. It is also a source of many of his ideas that market movements follow geometric rules.

 

[...] It is also quite interesting that Weston actually proposed two different versions of the ten year pattern. The first is his computation, using 50 years of data, of a series composed of 20 , 28, 10, and 14 month components, to which he adds a Venus term. In this system he cites use of heliocentric positions. We'll call this first method "Weston’s Curve’.

A most interesting point made in this method is Weston’s discovery that the planetary cycles tend to slip to synchronize with the earth’s annual cycle. I discovered this in my own work, and was sure it was an original discovery. So much for that vanity!

The second method I call “Weston’s Snowflake.” In it he proposes a sequence of turning points in the Jupiter-Saturn cycle that divides it into 10 irregular parts. Interestingly, Weston claims that this is a geocentric system. We'll show in a moment that it was not. But this “false lead” may have been intended for those whom Weston feared would learn his secret. Gann obviously made good use of Weston’s methods.  

[... Weston used] the 0, 18, 54, 90, 126, and 180 degree points of the Jupiter-Saturn cycle as turns. One can quickly see the problem with using this geocentrically. Almost all of the points are triple points, as the earth moves around the sun, giving multiple views from which to measure the angle between Jupiter and Saturn. The problem becomes one of which points to use.

[...] It took only one look at using this rule heliocentrically to convince me that Weston used it that way. Obviously, W. D. Gann watched these outer configurations to be alert for the deviations they might cause in the Jupiter-Saturn cycle. You are advised to do the same.

Quoted from:
Hans Hannula (1993) - Gann's Greatest Secret.

See also:
L.H. Weston (1921 & 1923) - Being a Treatise on the Geometrical or Chart System of Forecasting in which is explained the principles of the art, and, in this lesson no. 1, giving demonstration with the price curve of potatoes in U.S. 

Financial Markets & Seasonal Geomagnetic Field Variation | Hans Hannula

Any grade-school pupil can tell you when the seasons begin. In the northern hemisphere, generally, spring begins March 21, while summer begins June 21. Autumn begins September 23, and winter begins December 21. Actual dates may vary by one day in a particular year. So step one is simple.

The physical reason behind the seasonal cycle is the tilt of the Earth's axis. The 23.5-degree tilt of the Earth's axis causes more direct heating of the northern hemisphere in the summer, when the Earth tilts toward the sun. It causes less heating in the winter, when the Earth tilts away from the sun. This change in heating and cooling causes the seasonal weather patterns that we are familiar with.

 

Charged particles from the sun form a teardrop-shaped envelope about the globe called the magnetosphere.

Not so well known is the effect of the seasonal variation on the Earth's geomagnetic field. As the sun emits energy, charged particles flow outward, carried by the solar wind. As these particles sweep past Earth, they form a teardrop-shaped envelope around the globe called the magnetosphere.

There is a seasonal variation in two important parts of the magnetosphere. When the Earth tilts toward the sun in the summer, the charged particles can more directly flow into the north pole, where they affect the Earth's magnetic field. This effect is lessened when the Earth tilts away from the sun in the winter.

The second magnetic effect is on the magneto-tail, that part of the magnetosphere which streams away from the sunny side of the Earth. As the Earth tilts toward the sun, this tail "rides higher." As the Earth tilts away from the sun, the tail "rides lower." This affects how our moon, which moves in and out of the magnetosphere, interacts with the Earth's magnetic field.

Australian Government Bureau of Meteorology (2023):
The Seasonal Distribution of Geomagnetic Disturbances.

So what does this have to do with stocks and commodities? Scientific evidence suggests that these fluctuations in the Earth's magnetic field affect humans. Studies show that magnetic field changes are linked to blood PH changes, which in turn cause mood swings. Perhaps the psychological mood swings of traders are also subject to these magnetic field changes.

More obviously, the seasonal cycle could be expected to affect crop prices, such as those of wheat, corn and other commodities. Similarly, with most businesses running on a quarterly profit cycle, seasonal variations in the buying and selling of materials and equipment can be expected. Thus, on both a fundamental and technical basis, a trader can expect season price variations in stocks and commodities.

To perform step 2, mark the dates of the cycle on a chart with solid dots, and place them above or below the price as you estimate that price is high or low relative to what it was approximately one-fourth cycle earlier. Points do not necessarily have to alternate between high and low.

Now look for cycle "inversions." If two lows or highs occur in succession, the cycle has "inverted" between the points. A normal inversion point is halfway through the cycle.

Quoted from:
Hans Hannula (1991) - The Seasonal Cycle. In: Stocks & Commodities V. 9:11 (458-460).

 

See also:
Tianbao Zhou, Xinghao Li & Peng Wang (2021) - Chinese Stock Indices, Gann Time Theory & Solar Terms.

Chinese 24 Solar Terms for 2023.

 

 

CNN Business - Fear & Greed Index as of June 16, 2023.

Pre-Election Year Seasonal Pattern of U.S. Stock Indexes | Jeffrey A. Hirsch

In 2023 the 15th trading day of June will be Wednesday, 21st - summer solstice.

Reference:

Jeffrey A. Hirsch @ Twitter.

Trading the Pump & Dump Pattern | Cameron Benson

I'm going to show you that pattern that I use every single day on every single trade, whether I'm going long or short. The pattern that I'm referring to is the pump & dump and the dump & pump pattern. Every single market movement is either a pump & dump or a dump & pump pattern, and all trade setups are based on these two patterns.

 

 

Markets are fractal, and this pattern is going to occur on the weekly and the daily time frame, on the 4 hour, the 15-minute, the 30 second chart, etc. It doesn't matter: whatever you're looking at, this pattern is going to occur.

I use larger setups and then I start to break things down: I look at the date and day in the month, I look at the three-week cycle, at the three-day cycle, at what day are we in the week, and I look at the weekly range, what is the high and the low of the week. Are we working the low, are we working the high? 

 

Any unidirectional move – up or down - ends with a consolidation, followed by a break in market structure and a continuation to anther pivot level and/or it is followed by a reversal.

 

 

Three pushes to a high, a sideways consolidation, a break in market structure to the downside, then the dump. A lot of times the market will return down at least to the 50% retracement level or down to the level where the pump started or even below.

Reference:
Cameron Benson (May 27, 2023) - 15 Minute Talk That Will Change How You View The Market [Pump And Dump].
Cameron Benson (May 27, 2023) - Pump And Dump & Dump And Pump [Pdf-Slideshow of the above video].

See also:

Cameron Benson (Apr 27, 2023) - The 3 Day Cycle.
Cameron Benson (Apr 27, 2023) - The 3 Week Cycle.

Stacey Burke (2022) - Best Trade Setups Playbook. 

Al Brooks (2012) - Wedges and Other Three-Push Reversal Patterns.

The ‘Khaldun Curve’ | Nima Sanandaji

Ideas change the world. A good example of this is how the global view of taxation quietly began shifting one afternoon in 1974. That afternoon, the American economist Arthur Laffer met with Dick Cheney and Donald Rumsfeld, who both were working for the Nixon-Ford Administration at the time. The topic at hand was taxes, a pressing matter at a time when the highest marginal tax rate in the US was fully 70 per cent.

 

During the meeting, Laffer explained that the relationship between the tax revenues and the tax rate was not as simple as one would expect. Doubling the tax rate, for example, does not double the tax revenues, because higher taxes disincentives people from working. To illustrate his point, Laffer famously sketched a curve on a napkin. It showed that both a tax rate at zero per cent and one at hundred per cent would yield no tax revenues.

 

 

A tax rate of zero per cent would logically mean zero revenues, and one at 100 per cent would disincentives people completely from working, which also means zero revenues. The implication, Laffer noted, is that somewhere between zero and hundred per cent, there is a tipping point. Above this point, raising the tax rates would actually lead to such a damaging effect on economic incentives, that the collected taxes would actually be lower after the tax rate was raised.

 

Ibn Khaldun (1377) - Taxation and the reason for low and high tax revenues.

 

[...] The funny thing is that Arthur Laffer’s theory was far from new. He was rediscovering a concept that had been acknowledged during the Islamic Golden Age period of free market policy. Laffer has himself explained that he didn’t invent the curve, but took it from Ibn Khaldun, a 14th-century Muslim, North African philosopher. Indeed, many of the ideas we today associate with Western free-market thinkers originated in the Islamic world.

Quoted from:
Nima Sanandaji (2018) - Why the Laffer Curve should really be called the ‘Khaldun Curve’.

See also:
Ibn Khaldun (1377) - The Muqaddimah. An Introduction to History.
Amilcare Puviani (1903) - Theory of Financial Illusion. 

Stephen Moore & Arthur B. Laffer (2018) - Trumponomics. Inside the America First Plan to Revive Our Economy.

Robert Irwin (2018) - Ibn Khaldun: An Intellectual Biography.

Unshakable Fearlessness | Daisetsu Teitaro Suzuki

Unshakable fearlessness as such already amounts to mastery, which, in the nature of things, is realized only by the few. 

As proof of this I shall quote a passage from the Hagakure, which dates from about the middle of the seventeenth century:

Yagyü Tajima-no-kami was a great swordsman and teacher in the art to the Shogun of the time, Tokugawa lyemitsu. One of the personal guards of the Shogun one day came to Tajima-no-kami wishing to be trained in fencing. The master said, “As I observe, you seem to be a master of fencing yourself; pray tell me to what school you belong, before we enter into the relationship of teacher and pupil.” The guardsman said, “I am ashamed to confess that I have never learned the art.”

 

“Are you going to fool me? I am teacher to the honorable Shogun himself, and I know my judging eye never fails.” “I am sorry to defy your honor, but I really know nothing.” This resolute denial on the part of the visitor made the sword master think for a while, and he finally said, “If you say so, it must be so; but still I am sure you are a master of something, though I do not know of what.”

“If you insist, I will tell you. There is one thing of which I can say I am complete master. When I was still a boy, the thought came upon me that as a Samurai I ought in no circumstances to be afraid of death, and I have grappled with the problem of death now for some years, and finally the problem of death ceased to worry me. May this be at what you hint?”

“Exactly!” exclaimed Tajima-no-kami. “That is what I mean. I am glad that I made no mistake in my judgment. For the ultimate secrets of swordsmanship also lie in being released from the thought of death. I have trained ever so many hundreds of my pupils along this line, but so far none of them really deserve the final certificate for swordsmanship. You need no technical training, you are already a master.”

Quoted from: 

Daisetsu Teitaro Suzuki (1938) - Zen Buddhism and Its Influence on Japanese Culture. 

The 3 Day Cycle | Cameron Benson

 

 

The 3 Day Cycle  is a recurring market cycle, that when identified, can be the groundwork of a trade setup. It consists of 3 days, and begins with a false break at the current weeks high or low. In his Best Trade Setups Playbook Stacey Burke described the 3 Day Cycle setups as either pump and dumps, or dump and pumps: "They [the market makers] pump, pump, pump, go sideways and drop a bit, one more small pump, then a dump. The dump can go straight down, fast. The pump up, may often be hard to trade on the first day, the price action can be choppy, and back and forth, a slow grinding auction. Other times, you are forced to "chase the move."  

 

Finding Day 1:
Look for a false break above or below a previous day's high or low AT THE HIGH OR LOW OF THE WEEK.

Attributes of Day 1:
1. Breaks Below/Above Previous Days High or Low at the high of the week, and the day closes back inside of previous days range.
a. Sub Variation: Breaks through previous days level and days closes above/below that level. 

The following day, price comes back inside of the the range from 2 days ago and closes.
2. Can become a First Green Day or First Red Day (Signal for following day).
3. Day 3 sometimes turns into Day 1 at the close of the day.

 

 

 Attributes of Day 2 of the 3 Day Cycle:

Day 2 can be either
1. Continuation in direction of false break; or:
2. It can turn into ...
    a.) a First Red Day (FGD)
    b.) a First Green Day (FRD)
    c.) an Inside Day
    d.) a Trend Day

Areas of Interest:
1. High of the Day/Low of the Day (HOD/LOD)
2. High of the Session/Low of the Session (HOS/LOS)
3. Outside Day/Inside Day (Was there a false break?) (Act as Support/Resistance)
4. Low Bear/High Bull (Support/Resistance)

Day 2 Trade Setups:

- Long/Short Squeeze
- Parabolic Trend Trade
- High of the Session/Low of the Session (HOD/LOD) Trade
- High of the Day/Low of the Day (HOD/LOD)
- Low Hanging Fruit (LHF) Continuation (Trend Trade)

Method:
1. Support/Resistance References:
a. Low Bear/High Bull
b. Previous Days High/Low
c. HOD/LOD
2. Measure 3 Levels of rise/fall from Low/High of day for potential strike zone.
3. Use Support/Resistance References as additional confluence.

 

 

Attributes of Day 3 of the 3 Day Cycle:

1. Day 3 is the last day of the 3 Day Cycle.
2. A lot of times Day 3 can turn into Day 1, either on the current day or the next day 

(Reset of the Day Count).
3. Day 3 can either become a blow off trend continuation day (in the direction of the trend) or a reversal day.

Trade Setups:
1. Parabolic/Capitulation Trend
2. Reversal HOW/LOW
3. LHF Continuation (Trend Trade)

Areas of Interest:
1. Low/High of week
2. Previous Days High/Low (Support/Resistance/Trapped Volume)
3. High/Low of Day
4. High Bull/Low Bear (Support/Resistance)
5. OD/ID (Outside Day/Inside Day)

Reference:

Cameron Benson (Feb 9, 2023) - THIS Market Cycle Made Me A PROFITABLE TRADER.

Cameron Benson (Mar 5, 2023) - 3 Day Cycle Deep Dive.

Cameron Benson (Mar 30, 2023) - Trade Management.

Stacey Burke (2022) - Mastering the Day Count (4 Videos).

 

 

See also:

Cameron Benson (Mar 15, 2023) - Full Trading Strategy In One Live Class.

Stacey Burke (2022) - Best Trade Setups Playbook.

The 3 Week Cycle | Cameron Benson

 

 

There are multiple ways of Week 1 taking place: 

1.) Price breaks out and fails at the High/Low of the month above or below a previous weeks high/low.
2.) A 3 Week Cycle has completed (gone through week 1,2,3), but has not reversed on week 3. 

I refer to this as a "revolving door" style a.k.a. Trending Model of the 3 week cycle.
3.) A breakout occurs above/below previous weeks level, and on the following week reverses back above/below that level.
4.) On week 3 the market reverses BUT on the following week the market continues in the previous direction (a.k.a. Reset). 

 

 

Reference:
Cameron Benson (Apr 27, 2023) - THIS 3 Week Market Cycle Will SIMPLIFY Your Trading.
Cameron Benson (Apr 27, 2023) - The 3 Week Cycle (pdf slideshow of the above video).

 

See also:

Cameron Benson (Mar 15, 2023) - Full Trading Strategy In One Live Class.

Stacey Burke (2022) - Best Trade Setups Playbook.

 Stacey Burke (Mar 09, 2023) - Trading Inside or Outside the Daily and Weekly Range.

Cameron Benson (Feb 07, 2023) - A Stacey Burke Style Trading Plan.
Cameron Benson (Jan 15, 2023) - Finding Day One in the 3 Day Cycle.

Unity and Source | Seyyed Hossein Nasr

Omnia in uno sunt, et in omnibus unum.
All things are in one, and in all one.
Athanasius Kircher (1663)

 

» Ultimate Reality is at once Absolute and Infinite, the source of all being, of all consciousness and of all life. Itself beyond form, it speaks to mankind through revealed forms which, while externally bound and limited, open up inwardly towards the Boundless. Through revelations of this Word or Logos come into being the sacred traditions which although outwardly different are inwardly united into a Center which transcends all forms. They are, however, the bridge from the periphery to the Center, from the relative to the Absolute, from the finite to the Infinite, from multiplicity to Unity. «

Seyyed Hossein Nasr

Quoted from:
Seyyed Hossein Nasr (1976) - Ultimate Reality. 

Foreword to Keith Critchlow - Islamic Patterns. An Analytical and Cosmological Approach.