Today we look at the price movement of Bitcoin from September 20th 2022 and try to utilize the teachings of ICT (Inner Circle Trader) to look for setups in the price movement. If you don't know about ICT make sure to check him out here.
Be aware, that these trade setup reviews are for learning purposes only to help you (and myself) utilize the teachings of ICT in the crypto space. Further it is possible that there are other setups in the chart, which I do not cover here, as they might be not clean enough or on a too low timeframe to cover them in a written format (or I just missed them). Additionally I review the charts by utilizing ICT's teachings how I understood them - please keep in mind, that I could have understood his teachings incorrectly and therefore it is critical, that you watch his content and confirm these setups for yourself.
Before we get into the setups, just have a look at the economic calendar (i use ForexFactory) for September 20th 2022 below. As you can see there are no high impact news events for USD (high (and some medium) impact news events are utilized by smart money and therefore influence price) meaning we do not have to pay attention to news events for September 20th 2022 and can soley focus on the price action. This would not be the case, if we would trade a CAD Forex pair, as you can see on the calendar, CAD had a high impact news event at 8:30am.
Setups
Again we start out by looking at the plain 15m chart, where I highlighted the price movement of the 20th of September with a brighter rectangle and the purple horizontal line shows the daily open accoring to New York time. Further I have higlighted a FVG (Fair Value Gap) below a previous swing low, which is going to play a part in the price delivery of the 20th of September 2022. If you do not know, why the daily open according to New York time is important, or what a FVG (Fair Value Gap) is, make sure to watch ICT's content on his YouTube Channel.
1st Setup
The first Setup I cover here occured in the morning session on the 5m (5 Minute Chart) at around 11:30am. This was a bullish setup, as after price ran the old low with the FVG underneath (FVG from plain chart above) price consolidated for a bit and then started to push upwards. As shown in the chart above, price then ran up and broke a swing high, but failed to break the next higher swing high by a tiny margin. Again we have the situation, where price comes very very close to liquidity, but does not take it straight away, leaving us with a good target for a trade setup, as price tends to run liquidity it came very close to. Price then started to push down into a Discount, filled a FVG in a Discount and touched an OB (Order Block). So we have a Discount + FVG + OB, which are the ingredients for a good trade setup. One could have longed here, while targeting the FVG above the not-yet-broken swing high.
2nd Setup
The second Setup we cover today presented itself on the 3 Minute Chart after 5pm (5pm is outside of ICT's trading zone, but it is a very clean setup worth showing for learning purposes). Looking at the chart above, we can see, that price ran previous relatively equal highs prior to crashing down. This volatile downmove led to a market structure shift (visualized as MSB (Market Structure Break) in the chart) and left behind a FVG. After the downmove price pushed back up into a Disount into the FVG. Here one could have gone short and could have targeted the previous swing lows marked as liquidity (green lines) in the chart.
The 2 shown examples again showcase, that ICT's teachings are applicable in Bitcoin and that clean setups form nearly every day. For your own learning, there is another very clean setup in the charts, which you can try to find yourself: It's on the 1 Minute chart and it formed after 2:15 pm with possible entries at ~2:30pm and ~2:40pm. If you cannot find it - have a look at the price review for Sept. 20th 2022 on my YouTube Channel, I'll cover it there.
If you have any further insight or if you see another good trade setup on the charts, feel free to leave a comment. Also, constructive critisism is always welcome. I hope you have a productive day and I see you again in the charts!