Market Maker and Currency Control

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Questions and Answers

Who is primarily responsible for controlling and manipulating currency prices?

  • Investment Bank Dealers
  • Brokers
  • Individual Traders
  • Central Banks (correct)

What is the primary source of information for understanding currency price movements?

  • Commitment of Traders (correct)
  • Local Economic Reports
  • Corporate Earnings Reports
  • Stock Market Indices

What describes how smart money positions itself in the market?

  • Based on Global Interest Rates (correct)
  • By analyzing social media sentiment
  • By following popular trends
  • Through speculation of volatility

What is the characteristic of currency prices in relation to market participants?

<p>They are primarily driven by Central Banks (B)</p> Signup and view all the answers

What should the market be currently experiencing?

<p>A bearish market trend (B), A bullish market sentiment (D)</p> Signup and view all the answers

What is the primary objective when determining your trading timeframe?

<p>To know your timeframe for trading (C)</p> Signup and view all the answers

Which order has the highest probability of success according to market structure principles?

<p>Orders aligned with the higher timeframe direction (D)</p> Signup and view all the answers

During which trading session do AUD, NZD, and JPY pairs generally show the most activity?

<p>Asian Session (B)</p> Signup and view all the answers

What characterizes the market behavior during the Asian Trading Session?

<p>The USD pairs often consolidate until midnight NY time (D)</p> Signup and view all the answers

What should be the focus when analyzing multiple time frame market structures?

<p>The highest of the three timeframes for overall direction (C)</p> Signup and view all the answers

How can one benefit from scaling profits in trading?

<p>By identifying high probability entry points (C)</p> Signup and view all the answers

What is meant by 'Optimal Trade Entry Pattern' during the Asian Open?

<p>A pattern that may offer a 15-20 pip scalp (A)</p> Signup and view all the answers

What should traders do when observing price action over a month?

<p>Focus on how support and resistance structures play out (C)</p> Signup and view all the answers

What is the ideal time frame to monitor the London Open for potential setups?

<p>2:00am to 5:00am NY time (D)</p> Signup and view all the answers

During which trading session is a 20 - 30 pip scalp frequently available?

<p>New York Session (C)</p> Signup and view all the answers

What typically happens during the London Session when the market is bullish?

<p>It creates the Low of the day. (D)</p> Signup and view all the answers

The NY Session is known for which of the following characteristics?

<p>It has two potential scenarios: continuation or reversal. (D)</p> Signup and view all the answers

What is the main focus during the London Close?

<p>Analyzing OTE Patterns for a 10 - 20 pip scalp. (C)</p> Signup and view all the answers

What is the main trading strategy during the ICT London Killzone?

<p>To focus on potential OTE setups. (C)</p> Signup and view all the answers

What time period does the London Session extend beyond?

<p>5:00am to 7:00am NY time. (A)</p> Signup and view all the answers

What kind of market conditions should be present to focus on the London Session for the Low of the Trading Day?

<p>A bullish market being poised to trade higher. (D)</p> Signup and view all the answers

Flashcards

Market Maker

The Central Banks are the entity that controls and manipulates currency prices.

Currency Prices

Prices of currencies, determined and influenced by Central Banks.

Investment Bank Dealers/Brokers

They don't set currency prices; they work with prices set by Central Banks.

Price Feeds

The data provided by Central Banks about currency prices.

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Global Interest Rates

Key interest rates set by central banks, affecting long-term market trends.

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Commitment of Traders (COT)

A platform showing smart money positions and market sentiment.

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Market Movement

Changes in the market, primarily influenced by Central Banks.

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Long-term Macro Price Movement

Overall direction and trend of prices over an extended period.

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Fundamental Driver

The core factor impacting the market, such as interest rates.

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Market Sentiment

Collective market mood or perception, often implied by trader positions

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London Open OTE Setup

A high-probability trading opportunity characterized by an Optimal Trade Entry (OTE) pattern, presenting a potential scalp of 25-50 pips during the London Open, primarily targeting EUR and GBP pairs.

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London Session

The trading session spanning from 5:00 AM to 7:00 AM NY time, characterized by high order execution volumes, potentially resulting in significant directional moves.

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London Session High/Low

The London Session typically establishes the daily high or low. When the market is bullish, the London Session usually creates the daily low. Conversely, a bearish market may post the daily high in the London session.

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NY Open ICT Killzone

Optimal Trade Entry (OTE) occurrences within the 7:00 AM to 9:00 AM NY time frame, specifically for major pairs, potentially yielding a scalp of 20-30 pips.

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NY Session Characteristics

The NY Session, extending from 9:00 AM to 2:00 PM NY time, usually involves economic news releases influencing potential price continuation or reversal from the London session.

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London Close OTE Setup

An Optimal Trade Entry (OTE) pattern occurring between 10:00 AM and noon NY time in the London Close session, typically offering a 10-20 pip scalp for major pairs.

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Theory of Liquidity Raids

A market event where a large number of traders simultaneously try to sell an asset.

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Liquidity Pools

Collections of assets designed to facilitate smooth and predictable transactions.

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High Probability Liquidity Pools

Liquidity pools with high trade frequency and predictability.

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ICT Order Block

A section of the market where trades cluster frequently.

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High Accuracy Entry Points

Finding points in the market where trades are likely to succeed.

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Low Drawdown Entry Tactics

Strategies that reduce the amount of loss in a trade.

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High Probability Targeting

Focusing on trades with a high chance of success.

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Scaling Profits

Gradually increasing profits by strategically selling parts of your trades.

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Managing Losses

Strategies that minimize the extent of any losses.

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Trading Timeframes

Different periods for analyzing and executing trading strategies.

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Support and Resistance

Price levels where the market tends to pause or reverse direction.

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Market Structure

The pattern and arrangement of trades over time.

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Higher Timeframe Bias

The overall trend of the market at a longer time horizon.

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Asian Killzone

A time period of high potential profits in the Asian Trading Session.

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Consolidation

A period of no significant price movement in the market.

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Asian Session

The period of market activity during the early morning hours in Asia.

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Study Notes

Market Maker

  • Central Banks are the market makers for currency prices.
  • Currency prices are entirely controlled and manipulated by Central Banks.
  • Investment banks, dealers, and brokers are not market makers.
  • They operate using price feeds provided by Central Banks.

Market Sentiment

  • The provided text does not specify whether the market is currently bullish or bearish.

Information Sources

Market Movers

  • Traders do not drive markets; Central Banks do (in regards to currency prices).

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