Ict News Strategy: Look For Highs and Lows Liquidity Voids and Fair Value Gaps Look For Order Blocks and Breakers
Ict News Strategy: Look For Highs and Lows Liquidity Voids and Fair Value Gaps Look For Order Blocks and Breakers
Ict News Strategy: Look For Highs and Lows Liquidity Voids and Fair Value Gaps Look For Order Blocks and Breakers
Economic news reports are notorious for causing erratic price behavior
upon their release. It is often a time of great uncertainty, and the
ensuing volatility creates opportunity. This strategy will take advantage
of the violent price behavior. Here are the rules:
1. Wait for an economic news event to be released. The report can be the
unemployment numbers, the consumer price index, producer price index,
GDP report, etc. The more significant the report, the better the trading
opportunity.
2. Identify the previous day’s high and previous day’s low for the currency
pair.
3. If price raided the previous day’s high 30 minutes before the news event go
to 1hr time frame identify if price has created a bearish order block or is
creating a bearish order block. Place a sell stop at the bearish order blocks
low and place a protective stop loss just above the bearish order block
high. Take profit at logical levels.
4. If price raided the previous day’s low 30 minutes before the news event go
to 1hr time frame identify if price has created a Bullish order block or is
creating a bullish order block. Place a buy stop at the bullish order blocks
high and place a protective stop loss just below the bullish order block low.
Take profit at logical levels.
5. Let’s not forget the higher time frame institution order flow to assist us in
our trades look for where is the maximum level of liquidity with the least
resistance for price to run
Look for highs and lows
Liquidity voids and fair value gaps
Look for order blocks and breakers
BUY EXAMPLE
NZD interest rates
This is NZD/USD CHART before interest rates news event on wednesday13th
February, 2019
Let us add some analysis to it and follow the rules for trading the news.
From the above chart we have Buy side Liquidity and if you check you 4hr chart
NZD/USD was consolidating on a 4hr bullish OB, so INSTITUTION ORDER FLOW
On higher time frame is suggesting there is a high probability that we may see
higher prices.
Following the rules
1) Tuesday raided Mondays low and so on Wednesday 30 minutes before
news event we go to 1hr chart and anticipate price to create a bullish
order block or in the process of creating one.
2) If we have our bullish order block follow the rules: Place a buy stop at the
bullish order blocks high and place a protective stop loss just below the bullish order
block low. Take profit at logical levels.
Look at chart below
See that bullish order block noted on Wednesday prior to the news release that’s where you take your longs and
set stop loss below the order block.
SELL EXAMPLE
Usd Core Retail Sales m/m, PPI m/m Retail Sales m/m
This is USD/JPY CHART before news event on Thursday 14th February, 2019
USD/JPY raided Wednesday low on Thursday so following the rules: 30 minutes before the
news event go to 1hr time frame identify if price has created a bearish order block or is
creating a bearish order block. Place a sell stop at the bearish order blocks low and place a
protective stop loss just above the bearish order block high.