Aviona definitions Flashcards
what is the “ALGORITHM”?
The algorithm is simply a “program” that he believes was installed inside the price delivery.
The algorithm / the program decides autonomously how to price Indexes and Forex. It is attracted by liquidity and by inefficiencies. When you see how ICT talks about the price, and the precision with which some candles (and even wicks!) hit certain levels that he outlines.. you are just mind-blown.
what is the difference between BIAS and NARRATIVE?
NARRATIVE
tells us how day is going to trade.
what is the likely target
high or low volatility
road map - goal of price movement
BIAS
direction I am expecting price to go
direction I am trading
Why is CONSEQUENT ENCROACHMENT of FVGs important?
Consequent Encroachment is where price trades to a half of a FVG/imbalance. C.E. is when a fair value gap is filled by 50% and not completely.
C.E. are important because they are a potentially sensitive level.
Why is CONSEQUENT ENCROACHMENT of WICKS important?
C.E. is also the midpoint line of a wick or tail.
C.E. are important because they are a potentially sensitive level.
What are the 5 TYPES OF FVG’s
BISI - Buyside imbalance, Sellside inefficiency
SIBI - Sellside imbalance, Buyside inefficiency
Measuring FVGs
Get-away FVGs
Liquidity voids
INSTITUTIONAL ORDER FLOW ENTRY DRILL (IOFED)
That line is the high of the wick of a bearish candle that slightly enters inside the FVG and then it drops out and it is the Institutional order flow entry drill (IOFED). You can use the IOFED as an entry.
What is a LIQUIDITY VOID?
Gap in the price movement.
when there is a liquidity or a price void - and the price drops below it, it can happen that the price has difficulties going back into it. But why? Because now it is a balance price range.
What is the difference between a MARKET STRUCTURE SHIFT and MARKET STRUCTURE BREAK
A Market Structure Shift is just a short term change in market sentiment, and it will deliver on a short term basis.
A Market Structure Break is where the entire tie of the market place changes and we go on a change of trend.
A Market Structure Shift doesn’t require a higher close above the short term high, it just needs to trade above it.. just runs through it.
what is a MEASURING FVG and what is it’s significance?
It’s a FVG that gets form during a bigger price movement but on a lower timeframe (e.g. 1min). The measuring FVG will not get filled but it gives us an indication (indeed a measure) of the total price movement and so a confirmation of where out target exit should be.
We will measure from the get-away FVG to the measuring gap and project that price move to find our target.
Define and NWOG
Refers to the New Week Opening Gap which forms from the Friday close to the Sunday open - usually, there is a little gap in price.
NWOG WITH MIDPOINT
THIS IS What happens when price refuses to go past midpoint (CE) of NWOG
On the Electronic Trading Hours we can not see the Opening Gaps, while we see that on Regular Trading Hours! Keep it in mind (see “Trading Hours” for more info).
what is a PD ARRAY MATRIX
It’s a type of ICT analysis. Using the PD Array Matrix means that we will look past specific candles to see patterns.
We look back in time 20, 40 60 days. The highest form of sensitivity is 20 days.
We are looking to see key levels, such as: FVG, Order block, breakers, Institutional Order-flow entry drills,
Consequent Encroachment, Mitigation blocks, Rejection blocks, old highs and lows.
how do you find PREMIUM & DISCOUNT pricing?
The premium and the discount are part of our daily range of price movements.
Our daily range price movement goes from the low to the high of that day from 00:00am to 8:30am New York Local Time!
When we take that range, from low to high, and divide it in half - the top part will be our premium, and the low part will be our discount. Premium and discount refer to how expensive or cheap the price is in that specific day and range.
That said, we can also calculate the premium and the discount on a specific price movement inside a specific day.
It all depends on our analysis and our trading technique.
Define a PROPULSION BLOCK
Most sensitive area in order block theory!
(Bullish Propulsion Block) It’s a candle that has previously traded down into a down candle or Bullish Order Block and it takes over the role of Price Support. ICT Video Link.
What is SMT Divergence?
smart money tool or technique - SMT divergence is used by traders to determine if the trend is getting stronger or weaker, which may lead to a shift in the market sentiment.
Relative Strength Analysis uses SMT divergence - (refer to the ICT Mentorship 2023 video - “Deep Learning On Nasdaq Futures Trade” 4th Jan 2023).
SMT Divergence - for now simply study the picture
What is SPOOLING?
This is spooling - algorithm keep buying and buying - making the price go higher.
What is RELATIVE STRENGTH ANALYSIS?
It’s a strategy for analysing price movements, using the SMT divergence.
It is easier to do the Relative Strength Analysis by using
a) comparison of 2 indicators on the same chart;
b) using a vertical line that pierces both charts.
What is the advantage of using
It is about comparing highs and lows between NASDAQ & ES (for example):
they should be moving in the same direction;
they should NOT be making similar highs and lows - but the relationship between highs and lows should be the same.
What is the advantage of using ELECTRONIC TRADING HOURS?
Electronic Trading Hours (ETH) is the main full session for the instrument, according to its specification; Regular Trading Hours (RTH) is a reduced session that displays data between 08:30-15:15 CT.
On the Electronic Trading Hours we can not see the Opening Gaps, while we see that on Regular Trading Hours! Keep it in mind.
Define VOLUME IMBALANCE
The price levels in a specific area have been fulfilled or closed only with the wicks, not with the bodies of the candles.
