Finance
Best ICT Trading Strategies for Beginners
Best ICT Trading Strategies for Beginners: Introduction
ICT concepts are great but it can be really hard to put all the different concepts together into a strategy that you can actually use to make money. The Best ICT Trading Strategies for Beginners that I have found in the last eight years that I’ve been trading, and these strategies are the exact strategies that I have used to make life-changing money in the markets as a day trader. I’m going to break down all three strategies step by step and give you chart examples, that way you fully understand and use these strategies exactly as I tell you. There are no cutting corners, that’s why we have strategies — so you have rules to go by.Best ICT Trading Strategies for Beginners So I hope you enjoy and I’ll see you on the chart.
Best ICT Trading Strategies for Beginners: Understanding What a Strategy Is
All right, so let’s go ahead and get right into it. So today we’re going to be talking about the Best ICT Trading Strategies for Beginners. Now, before we get into this, you need to understand what a strategy truly is. Well, simply put, strategies are just rule-based systems to ensure that you only take high-quality trades, and when it really comes down to it, strategies are broken down into two core concepts, and those two core concepts are key levels and your entry model. Without a key level, you have no entry model, and without an entry model, your key level can’t make you any money. Your key level is going to be found on your higher time frame, then your entry model is found on your lower time frame. For example, this could be a 15-minute chart, and this could be a one-minute chart. This also could be maybe a 4-hour chart, and then this could be a 15-minute chart. The only thing that matters is that the key level is found on a higher time frame than the entry model is found. Today, I’m going to teach you the only two key levels that you ever need. So let’s go ahead and break that down.
Best ICT Trading Strategies for Beginners: Key Levels for Trading
The key levels that we’re going to be focusing on today, which again is all you’ll ever need, is going to be fair value gaps (FVGs) and liquidity. Now, liquidity is just any high or low. So here are some examples: if we zoom in right here, we have a fair value gap. Now, what exactly is a fair value gap? Anytime that we have a gap where a big candle has no wicks on the side of it. So notice how we look right here, there is a gap between this candle’s wick right here and this candle’s wick right there. So that is a fair value gap. The market likes to move from a low after it takes out a low. If it creates a fair value gap, the market will move back into that fair value gap and then usually continue on, just like you see here in this example. So we’re going to use this as a key level, and if on the higher time frame, we’re trading into a fair value gap, that is going to be the first step of any good high-quality trade. And not only fair value gaps, but we also have liquidity. We can use liquidity, so liquidity is just going to be resting beyond a high or low. So in this example, we have some local liquidity, meaning it’s a high that was recently made. So when the market pushes beyond this area, if we were to see a lower time frame entry model, that could be a higher-quality trade, and we’re going to get into the three entry models here in just a second with some chart examples as well. Now, the other kind of liquidity that I want to talk about is an old high. Okay, so notice how in this first example, it’s a very local high that was just created two candles before. But in this example, we have an old area of liquidity where the market made this really clean high and we traded back above it. Either one of these are valid, and this is actually the same exact example. If you look right here, this is just a zoomed-in version of that. Another cool tip is that if you see these key levels stacking up, meaning we’re taking out one level of liquidity, we’re taking out another, and then we’re creating fair value gaps, that is a lot of key levels pointing in the same direction, which would be the bearish side. Because if we’re creating bearish fair value gaps and we’re taking out highs, then we’re expecting the market to reverse, and vice versa for lows. We took out this liquidity once there, we took it out again, and the market starts to push up, and after you start to take out a lot of liquidity on one side of the market, oftentimes it will revert to the opposing liquidity. So anytime the market trades into either a fair value gap or liquidity, that is step one, and you want this to be happening on the higher time frame. So once the market is in a key level on the higher time frame, then and only then do we move to our entry model.
Best ICT Trading Strategies for Beginners: The Three Entry Models
For the Best ICT Trading Strategies for Beginners that are going to give you the very best three ICT strategies and simplify all of the complicated concepts down into three actionable ways to enter a trade, let’s go ahead and take a look at those options. So we’re going to have our inverted fair value gap, our market structure shift, and SMT divergence. So let’s break down each one of these with a couple of chart examples.
Best ICT Trading Strategies for Beginners: Inverted Fair Value Gap (FVG)
An inverted fair value gap is, well, exactly as it reads. Now, I remember that the first step to any high-quality trade is a key level. So before we even look at the entry model, let’s look at why we were even looking for it. Well, you see here on the 15-minute time frame, we had traded up above a high, and this also was the high that was made during the London session. But in this example, we traded above this high, so that was our trigger point as the market traded up right here. That’s where you’re looking for the higher time frame. You’re going to zoom in and see what the market is telling you, and if there is an entry model, then there is likely a high-quality trade. So let’s talk about the inverted fair value gap. Well, it is pretty self-explanatory, and it’s just that in the market, if we see this fair value gap right there. So notice there’s a fair value gap. If we are above this liquidity, which is this line, right, this big line you see, if we come above that and then the market inverts a bullish fair value gap, well, that is a good signal that the market is bearish. So as soon as the market closes below with this candle right here, right, we close below that fair value gap, at that time, you can enter the trade and put your stop loss above the highest high and then just target out the higher time frame liquidity. So if we go back and look, that higher time frame liquidity was this low. So up here, we looked for that inverted fair value gap, and as soon as the market inverted it, we could have entered the trade and looked to sell lower.
Best ICT Trading Strategies for Beginners: Market Structure Shift (MSS)
So let’s talk about the market structure shift, and again, the first step is always going to be a key level. And in this example, we came above an old high. So MSS stands for Market Structure Shift, and a market structure shift is just that. We want to watch the market instead of going from making higher highs and higher lows, like we were here — made a higher high, higher high — and then we took out this low with displacement. Displacement is whenever there’s a big push in the market that displaces price action. what I call displacement theory, I’ll leave a link down in the description for that as well. But in this example, we want to make sure that the market pushes beyond that level, creates a fair value gap, and then the market retraces into that fair value gap, and that is our entry. You would just set your entry right here with your stop loss above the highest high. So then we’re going to look to target liquidity at a 2R minimum. Now, you can also use higher time frame key levels to target your trades, but in this example, we had a good point of liquidity right here. So that was going to be a 2:1 risk reward. Now, maybe as you get more advanced, you can target further levels using fair value gaps or other highs or lows, but you want to make sure that’s based on your higher time frame analysis.
Best ICT Trading Strategies for Beginners: SMT Divergence
Last but definitely not least, we have SMT Divergence. So SMT Divergence is going to be found whenever we have a crack in correlation between ICT Trading Strategies two correlating assets. So ES, which is the S&P 500, or NASDAQ, which is NQ, usually move together, meaning that if one of them is making higher highs and higher lows, then the other often is as well. Now, sometimes we will have maybe ES making a higher high and then we have NQ making a lower high. Now, that is a bearish signal if the highs are being manipulated, meaning there is a crack in correlation between the highs. That would be bearish. Now, on the other hand, if we had a crack between the lows where the market was maybe making lower lows right on one asset but the other didn’t make a lower low, well, that would be bullish. So just remember if there’s a cracking correlation at the lows, that is bullish, or if there’s a crack in correlation at the highs, that is bearish.
Conclusion
So again, we always have to have a key level. Again, I can’t stress enough that your higher time frame key level is the foundation of your trade, and if you just look for entry models on a lower time frame, you’re going to have a lot of inconsistent trades, which is going to lead to a lot of losses. So our key level was this point of liquidity right here. The market traded into that liquidity, so that is our trip wire, where we can then look for our entry model, which is going to be SMT divergence in this example. So notice we have ES here on the right chart, and we have NQ on the left. Now, we had a lower high printed on NQ and a higher high printed on ES, and that is a cracking correlation. So that is a bearish signal, and that is exactly where I would be looking to sell. Now, if you want more examples of this, make sure you drop a comment and let me know.
So those are the Best ICT Trading Strategies for Beginners that I have been using for a long time. And that should give you some solid steps and strategies to follow. If you want more details, drop a comment, let me know, and I can walk you through how I analyze the markets even further!
Why an Emergency Fund Matters
If you want to worry less about your finances, build wealth, and avoid debt, it all starts with an Build an Emergency Fund. One of the lowest financial points anyone can experience is being unable to cover an unexpected expense—like a car repair—due to lack of savings. These situations are often a result of not planning ahead or failing to budget properly.
The Reality of Financial Ups and Downs
Even in months of high earnings, Build an Emergency Fund peace of mind comes from knowing that there’s a financial cushion to fall back on during low-income periods. An emergency fund is crucial for covering unexpected expenses like a broken boiler, roof repair, or job loss. Sometimes, more than one emergency can occur at once, making financial stress even more difficult if you’re living paycheck to paycheck.
The Cost of Ignoring It: Debt Trap
Without an emergency fund, a single unexpected cost can force you into debt. Add another emergency fund on top of that, and you could fall deeper into the cycle. Paying off debt, especially with high interest rates, only makes things harder. It’s a vicious cycle that holds you back financially—but there’s a way out.
Why Emergency Funds Come Before Investments
Investing may seem more exciting, especially with social media trends encouraging immediate wealth building. But financial experts typically advise having an emergency fund before investing. Investments work best over time, and markets can have ups and downs. You don’t want to be forced to pull money out of your investments during a downturn just to cover an emergency. That’s why emergency funds are vital—they protect your investments by covering unexpected costs.
How Much Should Be in an Build an Emergency Fund?
Most financial experts recommend setting aside 3 to 6 months of essential expenses. For example, if your monthly essentials cost £2,500, you’ll want about £7,500 in your emergency fund. While that may seem like a lot, especially given that the average savings in the UK is only around $1,000, it’s important to remember that these figures vary. Nearly half of people have £1,000 or less in savings, so if you’re above that, you’re already ahead.
Adjusting Based on Your Lifestyle Build an Emergency Fund
This isn’t a one-size-fits-all approach. If your lifestyle is frugal, your car is reliable, and your housing costs are low, you might not need as large a fund. It helps to identify your own worst-case scenario—like losing your job—and base your fund size around that. Start small: aim for £1,000, then one month of expenses, and build from there.
When to Stop Contributing to the Build an Emergency Fund
There will come a point when your emergency fund is “full.” Keeping £100,000 in a low-interest savings account doesn’t make sense if you’re neglecting pensions or investments. Balance is key.
How to Build Your Emergency Fund
1. Break It Down into Steps Build an Emergency Fund
Set a target and timeframe. For example, to save £7,500 over 24 months, you’d need to save about £310 each month. If that’s not possible, start smaller but stay consistent.
2. Automate Your Savings Build an Emergency Fund
Make saving automatic. Set up a direct debit so the money goes into your emergency fund as soon as your income hits your account. Make it a non-negotiable part of your budget.
Important Note: If you have high-interest debt, like credit card debt, focus on paying that off first. No savings interest will outweigh the cost of that kind of debt.
3. Use Savings Challenges or Micro-Savings Apps
Savings challenges like the Penny Challenge or 100 Envelope Challenge can be fun ways to build savings gradually. Micro-savings apps (e.g., Plum) or banking app features that round up transactions and set the difference aside are also helpful tools to boost savings effortlessly.
Where to Keep Your Emergency Fund
Accessibility is Key Build an Emergency Fund
Your emergency fund needs to be easy to access. Avoid stashing it in accounts with withdrawal penalties or low interest. Look for an easy-access saver account that allows multiple withdrawals if needed and offers the best interest rate possible.
Consider Tiered Saving Accounts Build an Emergency Fund
If you have a larger fund—say over £5,000—you might want to split it: keep some in a very accessible account (even if interest is lower) and the rest in an account with better interest but limited withdrawals. Shop around for the best deals and be open to moving your money.
Build an Emergency Fund: The Foundation of Wealth Building
An emergency fund helps avoid debt and stress, but it’s your long-term savings, pensions, and investments that truly build wealth. Think of the emergency fund as your financial foundation. It protects your future gains and helps keep your financial goals on track.
Even if you can only invest £50 a month, over 20 years with a 6% return, you could end up with around £22,000. And it’s your emergency fund that ensures you can consistently save or invest that £50, no matter what life throws your way.
The easiest way to Emergency Fund Calculation is to not calculate at all and to rely on a couple of data points. The rule of thumb for emergencies is that you should have 3 to eight months of expenses saved away in an emergency fund. But where did we get here, and why have we been regurgitating that same advice for years? Many financial experts have repeated this advice, but it’s worth questioning its origins and whether it still applies today. For many years, we’ve heard that you need a large emergency fund, but it took some critical thinking to figure out where this information came from and whether it’s still relevant.
What Is an Emergency Fund?
An Emergency Fund Calculation is cash that you have in a savings account, preferably a high-yield savings account, that you can tap into in the event of an emergency. This is a crucial piece of financial security and stability because the idea is that if you have cash on hand and you have an emergency, you can pull that money out of the emergency fund. It prevents you from going into a deeper financial hole if you had no money in a savings account and had to rely on high-interest credit cards, personal loans, or borrowing from others.
The Purpose of an Emergency Fund Calculation
The idea is that an emergency fund provides both literal and emotional peace of mind, offering a financial safety net.
New Research on Emergency Fund Calculation Amounts
Some researchers, Jorge Saat and Emily Gallagher, have crunched the data to determine how much money people should be saving for emergencies. They found that the traditional advice of having 3 to 6 months of income set aside isn’t supported by data. Instead, they looked at lower-income individuals who are more likely to need an emergency fund and don’t have access to other resources.
What the Research Found Emergency Fund Calculation
Their research found that the amount needed to prevent an emergency from becoming a financial disaster is not as high as 3 to 6 months of expenses. In 2019, they found that $2,467 was the amount needed to prevent an emergency from turning into financial hardship. Additionally, once you hit $500 saved, each additional dollar you save increases the likelihood that you won’t fall into financial hardship in an emergency.
What This Means for You
This research gives us a more data-backed approach to saving for emergencies. Rather than aiming for 3 to 6 months of expenses, we now have a better benchmark to start with. Instead of thinking you need to save an overwhelming amount, you can aim for a more achievable starting goal.
Setting Realistic Emergency Fund Calculation Goals
In 2020, about a quarter of Americans had less than $400 available in case of an emergency. Therefore, setting a goal of $400 for your emergency fund is a good starting point. After reaching $400, you can work on building up to $1,000. This is more of a mental goal than anything rooted in data, but for many people, seeing four digits in their bank account helps them feel secure.
Inflation-Adjusted Amounts Emergency Fund Calculation
Once you’ve saved $1,000, it’s time to move toward the inflation-adjusted amount found in the research. The study was conducted in 2019, but considering inflation, the amount now is $2,970. This is a more realistic number to aim for in today’s financial landscape.
Building Your Emergency Fund Calculation in Tiers
After reaching these early benchmarks, it’s important to adjust the amount to match your personal situation. For example, if you look at your last three months of spending, you’ll get a better idea of what your real expenses are. From there, you can calculate the amount needed for a one-month emergency fund based on your essentials like rent, transportation, food, and medicine.
Calculating Your One-Month Emergency Fund Calculation
This amount could range from $3,000 to $10,000, depending on your circumstances.
Quick Reminders About Emergency Funds
Purpose and Use of Emergency Fund Calculation
A couple of quick reminders about emergencies: They are meant to be used in the event of an emergency and not for discretionary purchases like designer sales or a weekend getaway. Your emergency fund should be kept in a readily accessible place, ideally in an FDIC-insured high-yield savings account.
Where to Keep Your Emergency Fund Calculation
While checking accounts offer minimal interest, high-yield savings accounts currently offer interest rates between 4% and 5%, which means your money will grow even as you keep it accessible for emergencies. This emergency fund is not meant to be invested or used for long-term goals. It’s simply there to provide peace of mind and security in the event of a financial emergency.
Introduction to Nvidia and Its Market Position
Nvidia Corporation, founded in 1993, has become a significant player in the semiconductor industry, particularly noted for its pioneering work in graphics processing units (GPUs). Originally targeting the nvidia stock price chart gaming market, Nvidia has expanded its innovations into various sectors, including artificial intelligence (AI), data centers, and automotive technology. Over the years, Nvidia has evolved from a focused graphics company to a diversified technology leader, driving advancements in parallel computing and deep learning, among other areas.
Historically, Nvidia’s stock performance has mirrored Nvidia stock price chart its substantial business achievements and technological breakthroughs. The company went public in 1999, and its stock price has seen remarkable growth, especially in the past decade. Key milestones, such as the introduction of the CUDA programming model and advancements in ray tracing technology, have solidified Nvidia’s dominance in the GPU market. The company’s strategic investments in AI technologies have further positioned it as a key resource in the evolving tech landscape, impacting sectors that range from gaming to complex scientific research.
Nvidia’s innovative trajectory is underscored by notable collaborations and acquisitions, which have expanded its capabilities and market reach. The acquisition of Mellanox Technologies in 2020, for instance, enhanced Nvidia’s data center business and allowed it to broaden its portfolio of high-performance computing solutions. This decisive move illustrates the company’s commitment to steering its growth through technology alignment and market demand. As a result, Nvidia continues to capture significant market share, resulting in impressive financial performance and positioning within the semiconductor ecosystem.
This overview sets the context for a deeper analysis of Nvidia’s stock price chart, where we will explore the trends and insights that have influenced its market valuation over the years.
Understanding the Nvidia stock price chart: Key Metrics and Indicators
The analysis of Nvidia’s stock price chart is essential for investors seeking to make informed decisions. Several key metrics and indicators can provide valuable insights. Firstly, the price-to-earnings (P/E) ratio is a critical metric. This ratio helps investors understand the valuation of Nvidia’s stock relative to its earnings. A higher P/E may indicate that the stock is overvalued, or alternatively, it may reflect strong market confidence in future growth.
Another important element is the market capitalization, which provides a comprehensive view of Nvidia’s total value as a publicly traded entity. By multiplying the current stock price by the total number of outstanding shares, market capitalization facilitates comparison with competitors and identifies Nvidia’s position within the technology sector.
Moreover, trading volume is a crucial indicator that shows the number of shares traded within a specific timeframe. Increased trading volume often signals heightened investor interest, which can impact stock price movements. For instance, abnormal spikes in trading volume may indicate that significant news has prompted a re-evaluation of the stock, making it a notable point of analysis.
In addition to fundamental metrics, technical indicators play a significant role in stock analysis. The moving averages smooth out price data over a specific period, thereby helping to identify trends. A common strategy involves observing the crossover of short-term and long-term moving averages to signal potential buy or sell opportunities.
The Relative Strength Index (RSI) is another technical indicator that measures the speed and change of price movements, typically ranging from 0 to 100. An RSI above 70 suggests that the stock may be overbought, whereas an RSI below 30 indicates it may be oversold, giving investors insight into potential entry or exit points. Lastly, the Moving Average Convergence Divergence (MACD) helps determine momentum and trend direction, offering further guidance on possible trading actions.
Historical Trends in Nvidia stock price chart: A Detailed Analysis
Nvidia Corporation, a leader in graphical processing units (GPUs) and artificial intelligence technology, has undergone significant fluctuations in its stock price since its initial public offering in 1999. Analyzing the historical trends of Nvidia’s stock reveals the influence of various factors, including product innovations, earning performance, and broader market dynamics.
In the early years, Nvidia’s stock price was relatively stable, with modest gains resulting from steady product releases aimed at both consumers and professionals. However, a notable transformation occurred in the mid-2010s when demand surged due to the rise of gaming and cryptocurrency mining. This phenomenon contributed to a sharp increase in Nvidia’s stock as the company capitalized on its industry-leading technology, leading to a peak market valuation.
Key product launches have played a critical role in shaping the stock price trajectory. The introduction of the Pascal architecture in 2016 marked a milestone, significantly enhancing performance and driving sales across various segments. Subsequent releases, like the Turing architecture, captured market attention, further propelling stock prices. Additionally, Nvidia’s strategic moves into artificial intelligence and data centers have highlighted its adaptability and potential for long-term growth, positively influencing investor sentiment.
Earnings reports have also been crucial in affecting Nvidia’s stock trends, often resulting in volatility. For instance, in Q2 2021, robust earnings and optimistic guidance led to an unprecedented spike in stock prices. Conversely, unexpected results or cautious forecasts can lead to rapid declines. Furthermore, external factors, such as shifts in market sentiment and economic conditions, have driven fluctuations, illustrating the stock’s volatility.
Overall, Nvidia’s stock history presents a compelling case study of how innovation, market trends, and external factors converge to drive performance, underscoring the importance of comprehensive analysis for investors looking to engage with this dynamic stock.
Future Outlook for Nvidia’s Stock: Analyst Predictions and Market Sentiment
The future outlook for Nvidia’s stock appears to be influenced by multiple factors, including technological advancements, competitive pressures, and macroeconomic conditions. Analysts have been bullish on Nvidia’s capacity to harness growth in areas such as artificial intelligence (AI) and gaming, which are pivotal to its growth strategy. With AI applications gaining traction across industries, Nvidia’s GPUs play a critical role, propelling expectations for expansive revenue streams. According to several analysts, this strong growth avenue could significantly bolster Nvidia’s stock price in the coming quarters.
Moreover, advancements in gaming technology, particularly with the emergence of next-generation consoles and graphics performance enhancements, position Nvidia as a leading player in this segment. The company’s commitment to innovation and its continued development of cutting-edge graphics cards could resonate positively with investors, reinforcing confidence in the stock’s potential. Analysts forecast a favorable trajectory if Nvidia maintains its competitive edge and expands its market share in the gaming industry.
However, potential challenges exist that could affect stock performance. Increased competition from companies like AMD and Intel presents a dynamic environment that may pressure Nvidia’s pricing strategies, potentially affecting margins. Additionally, the volatility surrounding semiconductor supply chains and geopolitical tensions adds a layer of uncertainty that analysts are closely monitoring. Recent headlines regarding tech regulations and trade relations can also cultivate caution among investors.
Market sentiment has shown resilience, with investors largely optimistic about Nvidia’s future proving evident from recent trading patterns. Overall, while the outlook for Nvidia’s stock remains promising with robust opportunities in AI and gaming, stakeholders should stay vigilant regarding market dynamics and competitive factors that might influence performance. As both analysts’ predictions and market sentiment evolve, a comprehensive analysis is essential for those evaluating Nvidia’s stock potential moving forward.
The One Financial Move That Can Change Everything: Build an Emergency Fund
Emergency Fund Calculation: How Much Should You Really Save?
Analysis of Nvidia Stock Price Chart: Trends and Insights
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