Forex market Algorithm. THE BEGINNING

https://www.nairaland.com/7990571/forex-market-algorithm




If you are here readin this and this piece resonates deeply with you, i will implore you watch Inner Circle Trader Mentorship MONTH 1. He released it for free on youtube because he wanted to spoil business for people repackaging and selling his course. lolzzz

All you have to do is read this, watch MONTH 1 mentorship and come back here and read this piece again. Then you will know why i said you should jot that part down in your notes

Starting off,

There is an algorithm that delivers price efficiently between real buyers and sellers in the market place coded with a special programming language and this algorithm is called IPDA: InterBank Price Delivery Algorithm

By real buyers and sellers, i dont mean you and i and other retailers you might have known or hear about

I mean the traders that you will never hear about. They call themselves the Interbank Traders or Smart Money Traders. These are the set of special people whom the algorithm was specifically made for so they can facilitate trades between countries currencies. I know you might want to disagree lolzzz but it is what it is. These smart money traders dont own youtube channels. They're not on Telegram. They're not on Twitter selling courses. They are discreet and you just might never know them. Trust me.

IPDA works on Time FIRST and Price LAST and it delivers price efficiently in Time and Price within these four delivery phase

1) Consolidation
2) Expansion
3) Retracement
4) Reversal

Thats all. Nothing happens apart from these four delivery phase. NOTHING

Its either price is consolidating or price is expanding or price is retracing or price is reversing. Nothing else.

These four parameters happen ONE AFTER THE OTHER as the algorithm wasnt coded to perform two delivery phase simultaneously ie price cannot consolidate and expand simultaneously the same way you cant turn your head left and right at the same time...you turn your head left then you turn your head right AND THIS INFORMATION RIGHT HERE IS THE CRACK WE NEED as retail traders to get in line with interbank traders.

The crack in IPDA. (Time and Price)
TIME First then PRICE Later.

Go to your charts. On the X-axis of your charts, thats TIME. while on the Y-axis of youe charts is PRICE

Time =

a) True day Open of any asset class be it Bitcoin, Deriv synthetic, cirrency pairs, futures, Bonds etc which is Newyork Midnight. WHATEVER Tine is it in Newyork Midnight, that should be your open time

b) sessions( Asia, London, Newyork (Am and Pm Sessions)

c) Silver Bullets

d) Macros

e) Economic Calendars especially red folder news

f) seasonals

g) Committment of Traders, COT Report and open interest

h) TIME DISTORTION

PRICE= Pd arrays(orderblocks, breakers, mitigation, Fair value gaps, inverse fair value gaps etc)

How IPDA works: You might want to write this somewhere in your notes now. Lolzzz. You will understand as you go foward in your trading journey but remember you got it here first. lolzzz



Consolidation= 50% of consolidation range
Expansion= Orderblocks
Retracement= Fair value Gaps
Reversal= Liquidity pools

1) PRICE ONLY GOES FROM CONSOLIDATION TO EXPANSION:

Price doesnt go from consolidation to reversal or from consolidation to retracement.

Price ONLY goes from consolidation to expansion.


2) Price doesnt go from consolidation to expansion to consolidation again. It never happens. It will not happen.

3) Its one delivery phase after another as two delivery phase can never happen sinultaneously

These are the three crack in IPDA i learnt from Inner Circle Trader after lazily studying for years and i created a blueprint for better understanding

Price consolidates and expands then it retraces ONLY if the expansion doesnt take out a liquidity pool because liquidity pool is paired with reversals AND reversals is conformed with break in market structure.


WE HAVE TO KNOW WHERE PRICE IS COMING FROM FIRST, WHAT PRIVE IS DOINH NOW AND WHERE IT IS LIKELY TO GO TO using its delivery phase available


1) Where is price coming from
2) What is price doing now
3) Where is price likely to go to

say price has been bullish or buying for instance

If price then consolidates and expands and there is no liquidity pool in sight, or the liquidity pool is farther away, PRICE WILL RETRACE into a fair value gap. And fair value gaps is just an area Interbank traders will use to continue price movement bullish or to continue buying

Then after the retracement, there is an expansion. if that expansion doesnt take out the liquidity pool again this time, price will retrace or if price takes out the liquidity pool, then we will see a break in market structure and then a retracement into a fair value gap and then a REVERSAL ie if price was buying and then it takes out liquidity pools, it will start selling. thats what i mean by reversing. Buying to selling

You have seen all these in your charts but you never knew what was happening until now

loading...

cc: HeatSeeker
yetown

**edited***
I included something but deleted nothing

I posted Part 1 in an investment thread but this is an algorithm we are talking about so i said why not move it to programming
.
Price algorithm is just a series of IF and THEN and OR

IF this happens, THEN that happens OR not and this happens instead. Simple thats all

AND isnt really considered cus the algorithm only does one delivery phase at a time. Ie either price is consolidating OR price is expanding. there is never consolidation AND expansion at the same time. Hope you get what i mean now. Your phone or laptop you are using to analyse price will blow if that ever happens. lolzzzz. just kidding

You are prolly wandering if im a billionaire by now after understanding this algorithmic concept BUT IM NOT. happy to burst your bubble lolzzz

Little background into trader me

I got introduced into Inner Circle Trader around early 2019. yeah. dont hate me

Then it was either i get into programming or i get into forex as i had already started forex by studying candlestick bible, elliot wave, head and shoulder pattern, butterfly, gartley, steve mauro sharkfin, BTMM, moving averages scalpalindo from south African traders and a whole lotta bullshit. and side note, all of these methods i just mentioned are bullshit.

Yes you will want to argue that they work. hmmm
ive been there. I lived this shit. i breathed this shit. i ate this shit. it was just shit. in different flavours

As i said, it was programming or Forex. Then python language was reigning but then, if lots of people are talking about it, then something is off. so i settled for javascript when i learnt it was Client side. Everything is hosted on the clients phone as opposed to servers.
just like whatsapp is combination of both client and server side while facebook is just server side. There is no backup of facebook messages on your phone but you have on whatsapp except the option of voice call as it cant be saved on phone or server. learnt the hard way though

i was deep into forex learning the silly stuffs i just mentioned until i got a call from a former colleague of mine. The talk went like this: " Theres this guy that teaches forex. he seems legit and he doesnt use any indicators. He can trade well without it. The guy is real."

So off i went. I didnt enroll for his mentorship though. lollzzz. i just went to look for his content on some telegram channel. i know i know but thats the way my story goes

Did i forget i tried learning Html cus i wanted to build websites but that niche was toooooooo saturated so nahhh. That was how i went for javascript.

i alternated between schooling, learning Forex and battling my masturbation

Anytime i got high from watching and jerking off porn, i lost interest in checking my meta trader 5. it was a depressing cycle.

my academic grades suffered. My relationship with both boys and girls suffered and my chart analysing skill was below below standard

I completed my degree and left school in 2023 april, got introduced to a man in here by the moniker Helpyourself, who helped me get free off my masturbation of 7yrs plus in 45 days
By december 2023, i was 3 months free of masturbation and porn watching. now its march. 6 months. i created a thread about this process.

and in the early period of march 2024, i finally understood what Inner Circle Trader, ICT was talking about that flew over my head since 2019. Shameful huh. lolzzzz you dont know the half of it

i saw myself as a smart ass so much that i binged watch mostbof ICT videos and i thought i was getting it but i kept blowing dollars after dollars. lolzzz

Now i understand what ICT is talking about, i have to go back to month 1 and start all over again. i have all his mentorship videos and i also have his commentaries and monthly analysis and his commentaries is where the meat of his mentorship is. ICT said he knew his mentorship was gonna get leaked so he spread the important part of his mentorship in his commentaries.

Guess what

HIS MENTORSHIP DID GET LEAKED.and he got angry and uploaded it all on youtube BUT GUESS WHAT AGAIN

ICT NEVER UPLOADED ANY OF HIS COMMENTARIES ON YOUTUBE. NOT ONE!!

That right there should tell you how important his commentaries is. and im going back to unlearn and relearn

i do not understand all of the algorithm as the TIME aspect is still blurry a little to me but what i do understand is the algorithmic process between consolidations, expansions, retracements and reversals

This is how ALL FINANCIAL MARKET algorithm operates (the only difference between bitcoinand eurusd or cadjpy is the time. the algorithmic process is same. consolidate, expand retrace reverse) and is coded and its not gonna change because we are discussing about it here. so buckle up people!

Next pArt up:


Where did price come from / Whats it doing now / Whats it expected to do

Since the algorithmic process is just four phases, it makes the process compared to if it were ten. Oh boy! We damn lucky

I will go through each of the algorithmic phases (consolidating, expanding retracing, reversing), what phase price is coming from(consolidation, expansion, reversal retracement), what price is doing now (consolidating, expanding, reversing or retracing) and what phase is likely to come next (consolidation, expansion, reversal or retracement)

...

Interesting...

@IAmHim, when is the New York Midnight time open in Nigeria time?

1) PRICE ONLY GOES FROM CONSOLIDATION TO EXPANSION:

Price doesnt from consolidation to reversal or from consolidation to retracement.

Price ONLY goes from consolidation to expansion.


2) Price doesnt go from consolidation to expansion to consolidation again. It never happens. It will not happen.

3) Its one delivery phase after another as two delivery phase can never happen sinultaneously

These are the three crack in IPDA i learnt from Inner Circle Trader after lazily studying for years and i created a blueprint for better understanding

Price consolidates and expands then it retraces ONLY if the expansion doesnt take out a liquidity pool because liquidity pool is paired with reversals AND reversals is conformed with break in market structure.


WE HAVE TO KNOW WHERE PRICE SI COMINF FROM FIRST AND WHERE IT IS LIKELY TO GO TO using its delivery phase available


say price has been bullish or buying for instance

If price then consolidates and expands and there is no liquidity pool in sight, or the liquidity pool is farther away, PRICE WILL RETRACE into a fair value gap. And fair value gaps is just an area Interbank will use to continue price movement bullish or to continue buying

Then after the retracement, there is an expansion. if that expansion doesnt take out the liquidity pool again this time, price will retrace or if price takes out the liquidity pool, then we will see a break in market structure and then a retracement into a fair value gap and then a REVERSAL ie if price was buying and then it takes out liquidity pools, it will start selling. thats what i mean by reversing. Buying to selling

You have seen all these in your charts but you never knew what was happening until now

loading...

cc: HeatSeeker
yetown[/quote]

Kindly use chart to illustrate this

what answer did your research give you

yetown:
@IAmHim, when is the New York Midnight time open in Nigeria time?

as i said earlier, the algorithm is either consolidating, expanding, retracing or reversing. Thats the 4 phases that repeats in the yearly charts down to the monthly, weekly, daily, 4hr and even the 1 second chart
PRICE IS FRACTAL


ALGORITHMIC PROCESS PART 1

Three perculiar things about the market algorithm IPDA, in terms of price only delivery using this 4 phase (I'm excluding TIME now)

First, we want to know three things

1) What delivery phase is PRICE doing now

2) What delivery phase did price just come out from

3) What is price likely to do next using which delivery phase


We will be using the CONSOLIDATION PHASE FIRST

so we open our charts and see price in a consolidation delivery phase, what then do we do

First, we ask:

(1)
Q: What delivery phase is price doing now

A: Price is consolidating


(2)


Q: What delivery phase did price come from

A: The answer is simple. You can immediately know the answer without going to your charts and i have already told you whats up in my previous post

For price to be consolidating, PRICE MUST HAVE ONLY COME FROM AN EXPANSION PHASE

*only come from an expansion phase*

and for price to be consolidating AFTER coming out of an expansion delivery phase, you should already know that what gave birth to that expansion WAS NOT a consolidation delivery AS PRICE CANNOT CONSOLIDATE, EXPAND AND THEN CONSOLIDATE AGAIN

write this in your notes


(3)
Q: What is price likely to do NEXT using which delivery phase

A: Since price is consolidating after coming out of an expansion and i have previously taught you that the algorithm cant make price consolidate, expand, and then consolidate again, so

out of the four delivery phase, consolidation is cancelled out since price is already consolidating (hope you get. there is nothing like consolidation and consolidation just like there is nothing like sleeping and sleeping. You gotta wake up first before you sleep again. hope you get it now)

...leaving us with just 3 delivery phase which are

1) Expansion
2) Retracement
3) Reversal

and since after consolidation, price MUST expand so we cancel out Retracement and Reversal

*but not all expansion delivery come out from consolidation*

then we are left with JUST AN EXPANSION DELIVERY TO ANTICIPATE AND TRADE.

now the next question you might be asking is, where is the expansion gonna be.

for instance, if price was buying (higher highs and higher lows) and then a consolidation happens, is the expansion out of the consolidation gonna keep buying or its gonna reverse and start selling

Thats a million dollar question and I'll leave that for someone to make an attempt. Then i will continue this lecture

Nice write-up, but it will be nice if you use the chart for illustration.

GENERAL MESSAGE TO ALL

All i am Forex trading wise is because God used a friend to connect me to INNER CIRCLE TRADER(ICT) If not none of this would be possible.


and the information im sharing right now, although ICT spoke about it, i can bet it with you that it LITERALLY flew over most people head who watched his mentorship and was part of those people too.


what im teaching right now is what most traders dont know it even most ICT traders cant wrap their head around it


I know most of the people reading and following this thread are new to forex and financial markets in general thats why im gonna put a BUT to this education

For you to really understand this coded knowledge here, YOU MUST WATCH ICT mentorship Month 1. JUST month 1 FOR NOW

Thats the prerequisite.

watch month 1 ICT mentorship, make your notes...journal and then come back here.


Youve heard of all those lightbulb moments, right

lolzzzz

Enjoy

Thunday1005:
Nice write-up, but it will be nice if you use the chart for illustration.

IAmHim1:


GENERAL MESSAGE TO ALL

All i am Forex trading wise is because God used a friend to connect me to INNER CIRCLE TRADER(ICT) If not none of this would be possible.


and the information im sharing right now, although ICT spoke about it, i can bet it with you that it LITERALLY flew over most people head who watched his mentorship and was part of those people too.


what im teaching right now is what most traders dont know it even most ICT traders cant wrap their head around it


I know most of the people reading and following this thread are new to forex and financial markets in general thats why im gonna put a BUT to this education

For you to really understand this coded knowledge here, YOU MUST WATCH ICT mentorship Month 1. JUST month 1 FOR NOW

Thats the prerequisite.

watch month 1 ICT mentorship, make your notes...journal and then come back here.


Youve heard of all those lightbulb moments, right

lolzzzz

Enjoy

How many videos make up month 1 ICT mentorship?

You have not made efforts to find out yourself have you.

See, relating with people is literally soo simple but some of you just mindlessly fvck up the process

instead of
"How many videos make up month 1 ICT mentorship?"

why cant you make it

" I found out ICT Month 1 mentorship is X number of videos. just wanted to confirm with you that i got that right"

with the second script, you have registered seriousness and zeal to learn compared to you wanting to be spoonfed all the time and people who recognoze value would want to really help you


ICT mentorship is for free on youtube. If you were really following this thread, you would have known this fact as i explained the reason he uploaded his mentorship himself on youtube

put an end to your 'conquered amazon princess' mindset. One right step everyday and you will get somewhere with time.

yetown:


How many videos make up month 1 ICT mentorship?

CONSOLIDATION: This is 1 of the 4 price delivery and it occurs when price is in a tight range. just going up and down inside a box like range


EXPANSION: one sided large trending moves that happens after price ends it consolidation delivery phase


RETRACEMENT: these are TEMPORARY price reversals that takes place in large trends. they're temporary. take note of that


PICTURE 3 and 4 shows retracements


see pictures for better understanding

Now back to this, observe the last two pictures posted. Hope it all makes sense now

price did not consolidate, expand and consolidate again as the algorithm IPDA, wasnt programmed to do so

for the first picture up before this post, it would look like price Consolidate, expand and consolidate again BUT if you look closely, before the second consolidation in the first picture, Price RETRACED then expanded and consolidate

so it wasnt CONSOLIDATE--- EXPAND ---- CONSOLIDATE (IPDA never ever does this)

instead it was

CONSOLIDATE---- EXPAND--- RETRACE--- EXPAND ----CONSOLIDATE

the algorithm, IPDA, doesnt move from consolodation to expansion to consolidation directly. it must have some breaks in between.

it may look like consolidation the second time but its probably just time distortion(i'm learning background on this)

2) What did price DO NEXT after consolidating





Ta-da!

IAmHim1:
as i said earlier, the algorithm is either consolidating, expanding, retracing or reversing. Thats the 4 phases that repeats in the yearly charts down to the monthly, weekly, daily, 4hr and even the 1 second chart
PRICE IS FRACTAL


ALGORITHMIC PROCESS PART 1

Three perculiar things about the market algorithm IPDA, in terms of price only delivery using this 4 phase (I'm excluding TIME now)

First, we want to know three things

1) What delivery phase is PRICE doing now

2) What delivery phase did price just come out from

3) What is price likely to do next using which delivery phase


We will be using the CONSOLIDATION PHASE FIRST

so we open our charts and see price in a consolidation delivery phase, what then do we do

First, we ask:

(1)
Q: What delivery phase is price doing now

A: Price is consolidating


(2)


Q: What delivery phase did price come from

A: The answer is simple. You can immediately know the answer without going to your charts and i have already told you whats up in my previous post

For price to be consolidating, PRICE MUST HAVE ONLY COME FROM AN EXPANSION PHASE

*only come from an expansion phase*

and for price to be consolidating AFTER coming out of an expansion delivery phase, you should already know that what gave birth to that expansion WAS NOT a consolidation delivery AS PRICE CANNOT CONSOLIDATE, EXPAND AND THEN CONSOLIDATE AGAIN

write this in your notes


(3)
Q: What is price likely to do NEXT using which delivery phase

A: Since price is consolidating after coming out of an expansion and i have previously taught you that the algorithm cant make price consolidate, expand, and then consolidate again, so

out of the four delivery phase, consolidation is cancelled out since price is already consolidating (hope you get. there is nothing like consolidation and consolidation just like there is nothing like sleeping and sleeping. You gotta wake up first before you sleep again. hope you get it now)

...leaving us with just 3 delivery phase which are

1) Expansion
2) Retracement
3) Reversal

and since after consolidation, price MUST expand so we cancel out Retracement and Reversal

*but not all expansion delivery come out from consolidation*

then we are left with JUST AN EXPANSION DELIVERY TO ANTICIPATE AND TRADE.

now the next question you might be asking is, where is the expansion gonna be.

for instance, if price was buying (higher highs and higher lows) and then a consolidation happens, is the expansion out of the consolidation gonna keep buying or its gonna reverse and start selling

Thats a million dollar question and I'll leave that for someone to make an attempt. Then i will continue this lecture

Kindly Reminder:

Dont just analyse your setups on a daily charts and be seeking entry on 1 minute or 5 minutes chart just like that

why

Because it takes time for the 1 minute or 5 minutes charts to truly reflect what is going on in the daily charts

There are process to analysis timeframe and then entry timeframe. Follow the process else you risk blowing your accounts. Trust me. I Know

Timeframe analysis not only reduces your risks but gives you more clarity in the market place

This picture posted below should give you your light bulb moment

What’s up?

I dey oo. Lolzzzz

yetown:
What’s up?

IAmHim1:
I dey oo. Lolzzzz

We thought you had retired 🤔

I made a pause in the lecture with the assignment I gave hoping someone would crack it. I've been observing here ever since

HeatSeeker:


We thought you had retired 🤔

IAmHim1:
I made a pause in the lecture with the assignment I gave hoping someone would crack it. I've been observing here ever since

Not yet crack it o

I'll help you out then.

God willing, this week
Stay tuned

yetown:


Not yet crack it o

I'll help you out then.
God willing this week

Stay tuned

yetown:


Not yet crack it o

1) Where is price COMING FROM, 2) What is price DOING NOW and 3)where is price GOING TO

These are the three important questions an astute trader asks himself/herself when trying to understand price action whilst using the four market conditions

1) Consolidation
2) Expansion
3) Retracement
4) Reversal

This is the continuation so buckle up

FIRST, we have to learn to see price as an algorithm. If THIS then THAT happens. No beating around the bush and no 'errmm '. Price Delivery is an Algorithm without any hint of emotions so we gotta drop our emotions as traders aside and focus on what the market is doing logically

moving on...

1) If Price is coming from a CONSOLIDATION and it is currently EXPANDING -- The market conditions likely to happen are:

a) consolidation -- NO
Because price CANNOT consolidate -- expand -- consolidate

b) expansion -- NO
Because price is CURRENTLY in this stage

c) Retracement -- YES

WHERE IS PRICE GONNA RETRACE TO?
A fair Value Gap
**(You can see this fair value gap on a timeframe lower than that in which the liquidity is taken OR the same timeframe in which the market takes out liquidity

Ie let's say price takes out liquidity on a 4hr timeframe and we expect price to retrace into a fair value gap so as to continue buying OR selling.

if we do not see the fair value gap on the 4hr timeframe, we can go to a 2hr or 1hr. or a 30 minute timeframe. Don't go to a 1minute or 5 minute to look for fair value gap when the action happened on the 4hr timeframe. I already posted a picture here of how timeframe controls one another so check it out)**


WHY
To continue its trend it was in BEFORE THE RETRACEMENT--

Either price was previously buying, then it retraced into a fair value gap to continue its buying

OR

price was selling, retraced into a fair value gap and CONTINUED selling

d) Reversal -- YES
Price can reverse IF the expansion that comes out of the consolidation takes out buy stops (which are resting above old highs) or sell stops (which are resting below old lows)

These buy stops or sell stops are liquidity and price needs liquidity to move.
Specifically speaking, price needs liquidity TO CHANGE its direction from either buying to selling or from selling to buying

and thats why i said earlier that REVERSAL is paired with LIQUIDITY (buystops or sellstops)

Go to your charts and see all the major turning points. From buying to selling or from selling to buying...PRICE TOOK OUT LIQUIDITY FOR IT TO REVERSE

and that right there is my assignment answer leaked generously.

2) Price is coming from AN EXPANSION and has NOW RETRACED into a Fair Value Gap. what can price do next

The Market conditions likely to happen are

a) consolidation -- YES

WHY
because after a consolidation in the market place comes an EXPANSION

and

after price retraces into a fair value gap, it must EXPAND in the direction it was going BEFORE the expansion

so its like consolation and retracement are paired siblings. Your epiphany right here incoming

Remember i said that price cannot Consolidate -- expand -- and consolidate again because this is not how the algorithm was programmed

but what price can do to beat this limitation is this:
Price can consolidate -- expand -- then retrace -- AND CONSOLIDATE again

the difference is that retracement IN BETWEEN the expansion and the next consolidation.
The retracement caused A CRACK

and since retracement is paired with fair value gaps, YOU CAN EXPECT CONSOLIDATIONS TO HAPPEN IN FAIR VALUE GAPS (clearly seen on a lower timeframe OR same timeframe) -- which would then lead to an expansion

b) expansion -- YES

I have explained how expansion can happen when price retraces into fair value gaps BY WAY OF CONSOLIDATION. but i only explained the consolidation part

There are THREE (3) things that happen in EVERY fair value gaps

EITHER

1) the fair value gap get completely closed up ON THE TIMEFRAME THE FAIR VALUE GAP APPEARS CLEARLY to signal a change in bias / market direction.

THATS the concept of Inverse fair value gaps (ifvg)

2) a consolidation happens in a lower timeframe ,*or same timeframe* in the fair value gap that then leads to an expansion since AFTER a consolidation in the market place, there MUST be an expansion

3) Price takes out liquidity (buystops or sellstops on a lower timeframe and then reverse making it look like an EXPANSION on the higher timeframe


c) retracement -- NO
because price is already Retracing so price cannot retrace and retrace again

d) reversal -- YES
price can reverse after it has retraced into a fair value gap

HOW

by taking out liquidity (buystops or sellstops) on a lower timeframe as i just explained in this B part of no. 2