ICT Market Maker Primer Course - 17 - The

ICT ATM Method

SUMMARY KEYWORDS
minute chart, price action, pips, price, hourly chart, high, swing, atm, pattern, trade, violated, short term,
setup, risk, key, pretty, minute timeframe, level, stop loss, little bit

SPEAKERS
ICT

ICT 00:11
folks welcome back in this teaching terming specifically dealing with the ICT ATM method

ICT 00:23
okay points of focus in this module we introducing the ICT ATM method the ATM and bares conditions
with targets and stop placement the ATM in bullish conditions, the targets and stop placement.

ICT 00:42
Okay introducing the ICT ATM method.

ICT 00:47
Alright, it's a standalone price action pattern. The pattern capitalizes on stop runs to find this pattern on
the 60 minute chart It's relatively easy to spot and you can do it quickly and finding it. Because it's
pretty much a well, it's a rejection level. Okay, and I'll show you what that looks like. It's pretty easy to
trade. And the wonderful thing is it's a complete trading model for setups. Guess we're gonna look at
the ATM in bearish conditions. Now once you take a look at this diagram on the right hand side, okay
and let the image burn in for a couple of minutes. And as I'm talking to you just kind of like study what
it's depicting. And I want you to think about how when we start as traders generally the idea of support
resistance is rather early in our introduction to technical analysis. And the problem I found when I first
started as a trader is what support resistance levels do I use this? I mean, there's so many you could
possibly have in your chart, which ones should I be focusing on? So, my work has been trying to
simplifying that so that way I could teach it to my children. Because of this, I've been able to make
pretty detailed tutorials for people around the world to learn from. And I've developed a little bit better
ability to teach over the years doing it. But initially, when I first started, I gave a lot of information, and it
was overkill. So this teaching is going to be rather brief, but it's again, very dense in its information. So
again, looking at this diagram here, I want you to think about what would constitute these turning points.
And I'm sure if you were to go through charts, you could see patterns like this that are very similar in

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different timeframes. The timeframe that I teach, defined this pattern on is the hourly chart. The reason
why I like to look for it on the hourly chart is because it gives me flexibility to drill down to a lower
timeframe to refine risk to a smaller amount, while still keeping the maximum reward still in sight. And
also, the hourly to me is clean enough in terms of a timeframe, it promotes a little bit longer term
horizon for the setups. Now granted, an hourly chart is not long term. But you can see a lot of the levels
you can see otherwise on a four hour or daily if you know you're looking for. So I kind of like to ingrain
in your mind in this teaching how we can use key support resistance levels, and what makes these
levels key. So the first thing you want to do is you want to take your 60 minute chart and this can work
on any asset class. Okay, so I'm going to be using forex for this discussion. Okay. The scope is in
demo trading only. But you can also do if you also do demo accounts with futures contracts, commodity
stocks, bonds and the like. So, you start with a 60 minute chart. Pretty simple, straightforward, you
don't do, you don't do a whole lot of top down analysis, because the pattern is self sufficient. So you've
been looking for a 60 minute chart for a key high to form. And what makes it a key high is you want to
see it create this initial short term high, and then it runs through it. It breaks down, okay, it's gonna
break a swing low right here. When price trades through that, that's when it becomes a valid pattern. It
does not become a valid pattern until we get below this swing low here. Okay? So imagine price action,
kind of creating a checkmark Okay. Give it little short short term high here and it makes a check like
that. Okay? When that check mark gets surpassed by price action when it trades back up to that, that's
setup. Okay, that's what we're looking for. So ideally, what makes this setup stronger is if this whole
price swing is part of a two stage move. In other words, we have a short term high, that's ran out, and
we have a short term high here and it runs out. Okay, so this move should be ideally the second move
up, taking a short term high. That means we're pretty much overbought from a technical standpoint
without the necessity of any indicators.

ICT 05:45
So we're focusing again on this short term low here and it has to break below that. Again, part of a two
stage move higher And we're gonna be waiting for price to retrace back to the swing low that forms
prior to the key high forming. Now what makes this high key is the fact that we have taken out a short
term high, but the low immediately after that short term high is violated, it's broken down. So, in
essence, this is a break in market structure here. And all we're doing is waiting for a retest of that same
old support level now becomes resistance. So now when we see this in proper context, we can classify
and quantify real support resistance, because we're incorporating the idea of a stock run above this
short term high. And then anyone that's long here, we're gonna have a stop below this low, so they run
through those stops. Price comes back up to this level here. We've already rejected price above this
short term high above number two. So this level here should promote selling and it should stave off
Real buying, because we've broken market structure with this swing low with this drop down. So this
would be a nice area to look for shorts. And then once we have that, what we look for on this entry
pattern, we have to frame obviously, profit and risk. So we first have to determine what's our potential
profit. What do we hope to make? So we look for a swing low, where in this case it would be sell stops
resting below that short term low. And we would target from our entry point at this low down to that level
just below the old low that's what we are aiming for. That's our target, if you will, the risk is going to be
defined by one or two pips above the key high, okay, or the rejection high. Sometimes price can go
above this short term low a little bit. It's better if it doesn't, but don't be afraid. If it goes up by a little bit,
your stop loss is up here to do its work. It's a demo account, don't lose any sleep over. Okay? So we're

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looking for the framework of this entry point to this as our objective and our stop loss protecting our
overall position. Okay, so let's take a look of it in actual price action. Okay, we can see price creating a
short term high here, price runs through it, no short term high here, price runs through that and then it
rejects being above this short term high and trades down below this low in price comes back up and
retake retreats to it. Okay, so this candle here violates it and then we come right back up to it and
trades right into that same level. As soon as that happens, that is a sell scenario. Okay, or shorting
opportunity. We're gonna be looking for a move below this low. Our risk is defined by the high six Five
pips risk to make from this entry point down to the stops. That's not bad you can take that trade it's not
you barn burning, okay? If we drop down into a 15 minute timeframe, we can take that same insight in
here in zero in and use our trusty optimal trade entry pattern to reduce some of the risk. So now we can
reduce that 65 pips stop loss down to 20 pips. Notice also that we have a Fibonacci extension of 300%,
which takes us right below that low where our sell stop target with me. Now we're going to look at an
example of the bullish condition of an ATM. Again, look at the scenario here in this crude depiction.
Game we'll be scanning the price action on a 60 minute chart key low to form and a short term swing
high broken to the upside. That's gonna be this here. So we're looking for For a low, that's violated and
then we trade rate back above the short term high right here. So in other words, what we're looking for,
it's kinda like a crooked little number seven. Okay? And when that is violated on the upside, when price
comes back down to it, that's what we're hunting. So ideally, this is going to be part of a continued
swing lower, we have a swing low, that's violated here, and then we have a swing low, that's violated
here. So it's like a two stage move lower of breaking old support old support. Now we're really oversold
technically without any necessity of needing any indication to tell us that. So here's our to scale drop
down.

ICT 10:42
And where are we waiting for price to retrace back to the swing high broken prior to the key low forming
again, that's this here, and we zero in right there. That's our setup for a long. So we'll look for our
opportunity for creaming our potential reward. Again, we're gonna be hunting by stops above this swing
high here. And stop losses below here. So our entry to our stock is our risk and our entry to the buy
stops above here is our potential profit or reward.

ICT 11:12
All right, we'll take a look at an example in the bullish condition.

ICT 11:17
Alright, so here is price action on an hourly chart, you can see we have one support level broken,
another area of support broken, and then we have an old Whoa, violated aggressively, and then price
trades back above it right here. When we see that this retest of that old high, that's where we're hunting
along. So if that's our entry, and this is our stop loss, we're risking 140 pips, to make 225 pips by stops
are our target here. Now that may not be an ideal scenario for you, it may not be something that fits
your risk appetite, so we can now drop down into To a 15 minute timeframe and try to get that same
225 pips with a little bit lower stop loss. So here we are on a 15 minute time frame, I've zoomed in here
and that same little area of looking to be a buyer, we're going to be now removing all that risk down to
80 pips, so we have a stop loss just below this old low here. Okay, so we have this low to this high
here, coming back down to that level. So we're trying to give ourselves a little bit more of a better risk

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reward model here. Right away, we're almost at three to one that's improved, but watch what we do
when we zoom in a little bit more. We're gonna actually go down to a five minute chart now and still see
if we can get that 225 pips but with a smaller stop loss. Okay, so now we have a five minute chart
again, that same little area, that green circle resumed in here. And now I'm doing this doing an optimal
trade entry long are in the fifth and the body's lowest open or close to the highest open or close and this
swing high guess is a beautiful little optimal trade entry long. Right at the same level, we'd be looking
for that scenario to unfold that. And now we can reduce that stop down to 20 pips, but still looking and
hunting to earn 25 pips or in this case becomes 11 to one reward the risk model. So what we've done is
we've looked for a key turning point. We've identified the key levels relative to runs on liquidity stops,
and we use the targets in the form of a stock run as well. We can use the optimal trade entry to zero in
and reduce the risk but still keep the possible potential reward, still the same as we would have used
from an hourly setup. So the 225 pips is still available to us with a 20 PIP stop loss. Now granted, you
have to hold for a while but this is what It looks like on a five minute zoomed out and not getting the
entire move, but it takes a little bit of time to get there. But nonetheless, this is how we can use the ATM
method to get high probability setups, trading key support resistance levels. Again 225 pips is available.
That's 20 pips stop loss. Hope you enjoyed this presentation. If you'd like these types of teachings, you
can find more at V inner circle trader.com

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