Unicorn Edge Price Action

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Table of Contents The Basic Foundation. 1. Time Elements

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1.1

Importance of Time .......................................................................................................................... 7

1.3

News Drivers ....................................................................................................................................... 8

1.4

Macros ................................................................................................................................................ 8

2. Liquidity 2.1.

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Understanding Liquidity: ................................................................................................................ 10 a.

Liquidity Pools: .............................................................................................................................. 10

b.

Market Manipulation and Liquidity Runs:................................................................................. 10

2.2.

Types of liquidity: ............................................................................................................................. 10 a.

Swing Highs and Lows: ................................................................................................................ 10

b.

Buyside and Sellside Liquidity..................................................................................................... 11

c.

Session Highs and Lows: .............................................................................................................. 12

3. Breaker Blocks

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3.1

Bullish Breaker Block ........................................................................................................................ 14

3.2

Bearish Breaker Block ..................................................................................................................... 14

4. Fair Value Gaps

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4.1

Understanding FVGs ....................................................................................................................... 16

4.2

BISI (Buy Side Imbalance Sell Side Inefficiency) ......................................................................... 17

4.3

SIBI (Sell Side Imbalance Buy Side Inefficiency).......................................................................... 17

Market Mechanics 5. Opening Market Dynamics

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5.1

Indices opening range concept: ................................................................................................. 19

5.2

The Judas Swing: ............................................................................................................................. 19

The Unicorn 6. Putting All Together

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6.1

Opening times ................................................................................................................................. 21

6.2

Breaker ............................................................................................................................................. 21

6.3

Draw on Liquidity (DOL) ................................................................................................................. 21

6.4

Time Frame Alignment ................................................................................................................... 21

7. The Process

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The Execution

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8. Entry Protocol

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The Discipline

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9. The Order Sequience and Discipline

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Acknowledgments Expressing gratitude becomes a challenge when there are countless individuals to thank. Primarily, this ebook is an expression of heartfelt thanks to my father, a powerful role model, and to my mother, the embodiment of love and kindness.

I owe the realization of this book to two exceptional mentors who played pivotal roles. My sincere appreciation goes to Matthew Geisler, fondly known as "Ash Trades," and Michael J Huddleston, recognized as "ICT." Their guidance, insights, and unwavering support were instrumental in transforming this endeavor from a vision into reality.

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Disclaimer Furqan Malick Trades Market Options: Any opinions, news, research, analyses, prices, or other information contained on this paper is provided as general market commentary, and does not constitute investment advice. Furqan Malick will not accept liability for any loss or damage, including without limitation to, any loss off profit, which may arise directly or indirectly from use of or reliance on such information. Accuracy of information and the content on this book is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. Furqan Malick has taken reasonable measures to ensure the accuracy of the information on the paper, however, does not guarantee its accuracy, and will not accept liability for any loss or damage which may arise directly of indirectly from the content or your inability to access the paper, for any delay in or failure of the transmission or the receipt of any information or notifications sent through this paper. Government Required Risk Disclaimer and Disclosure Statement: CFTC RULE 4.41 HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS, UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performances results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points with can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the Implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which adversely affect actual trading results. U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives and financial. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margins funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a "limit move." The placement of contingent orders by you, such as a "stop-loss" or "stop-limit" order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders. By viewing any Furqan Malick Trades text, audio, visual commentary, video or presentation, you acknowledge and accept that all trading decisions are your own sole responsibility, and the author, Furqan Malick and anybody associated with Furqan Malick cannot be held responsible for any losses that are incurred as a result.

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Who is Furqan Malick A brief Introduction Greetings to fellow traders and enthusiasts! Allow me to introduce myself—I am Furqan Malick, a visionary aspiring to blend the worlds of real estate development and forex trading. In the vast expanse of financial markets, I navigate the waters of equity and forex, utilizing them as vessels to liquidity.

My journey involves the continuous pursuit of growing passive income through day trading. Each evening, I embark on a series of day trades to secure short-term profits, funds earmarked for future real estate acquisitions. Leveraging equity indices during the opening bell, I capitalize on shorterterm market movements.

As I share my experiences and insights, I echo the sentiment that education is the cornerstone of success. "Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime." The path to mastery requires time, practice, and a commitment to continuous learning. With the right blend of risk management and education, I firmly believe that anyone can acquire the skills needed for success in the financial markets.

This book is an embodiment of my evolution—from an eager novice to a seasoned practitioner. Beyond charts and technicalities, it unfolds a narrative woven with personal anecdotes, challenges overcome, and triumphs celebrated in the realm of trading.

As you embark on this journey with me, expect not just trading strategies and insights but a story of resilience, adaptability, and an unwavering quest for knowledge. I invite you to join me in navigating the complexities of financial markets—a journey that is not just a guide but a shared exploration for those who seek to grow and thrive.

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The Basic Foundation. 1. Time Elements: 1.1

Importance of Time

When discussing time in the context of trading, it's crucial to consider the New York time zone [UTC -4]. This is a key element that many novice traders often overlook when starting to delve into the market. Throughout each day, there are distinct trading sessions that influence price movements, presenting opportunities for strategic capitalization. Understanding and recognizing these sessions allows traders to anticipate specific market characteristics and make informed decisions.

1.2

Killzones

Killzones are specific time windows during the trading day in which the volatility is higher which makes it more ideal for catching larger ranges. This killzones are generally divided into four sessions

Note: The specified "killzones" timings mentioned earlier apply specifically to stock indices. It's essential to adjust these timings accordingly when trading in the Forex market

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1.3

News Drivers

Monitoring news drivers is crucial to understanding their impact on your trading schedule. You can visit http://www.forexfactory.com to stay updated on potential news drivers. -

If a news driver occurs before the 9:30 open, it provides an opportunity for early position searching since the primary liquidity injections have already been induced.

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On the other hand, if a news driver occurs after the 09:30 open, it is likely to result in price consolidation as the liquidity injection is yet to arrive. In this case, I recommend waiting for the news driver before making any trading decisions.

1.4

Macros

Macros refer to specific time slots during which the algorithm is expected to generate significant price movements. Within this timeframe, the price is highly likely to engage with existing liquidity, and there is also the potential for the algorithm to establish new liquidity. Macro Time Windows: 1. 08:50 - 9:10: AM session macro slot 2. 09:50 - 10:10: AM session macro slot (High probability for indices) 3. 10:50 - 11:10: AM session macro slot 4. 11:50 - 12:10: Lunch session macro slot (we don't participate) 5. 12:10 - 13:40 PM: PM session macro slot 6. 15:15 - 15:45 PM: PM session macro slot If we consider that market prices are orchestrated by algorithms, it follows that such a system requires instructions. ICT asserts that the IPDA executes macros at specific times during the day. Of particular significance is the 9:50 to 10:10 macro, a focal point for our attention. Understanding its function and how to leverage it is crucial for enhancing our trading model. Without this concept of time-bound actions, less experienced traders might attempt to enter the market at any key level, lacking the discretionary experience or intuition to assess the relevance of the key level. During this 20-minute macro time window, traders can anticipate an accelerated market pace, moving towards a key level. This key level may manifest as a liquidity pool or any other Point of Dominance (PD) Array that serves as a "draw on liquidity."

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2. Liquidity 2.1.

Understanding Liquidity:

Liquidity in the context of ICT trading involves understanding where significant orders are located in the market. This understanding helps traders identify potential support and resistance levels, anticipate market movements, and avoid falling into traps set by institutional traders during liquidity runs.

a. Liquidity Pools: A liquidity pool is a specific price level where a notable concentration of buy or sell orders is expected. These areas are significant because they represent zones where institutional traders and market participants are likely to execute trades.

b. Market Manipulation and Liquidity Runs: ICT often discusses the idea of market manipulation and liquidity runs. Institutional traders may intentionally create deceptive price movements (like the Judas Swing) to trigger the stop-loss orders of retail traders. This can lead to a swift change in market direction and the creation of new liquidity for institutional traders to fill their positions.

2.2. Types of liquidity: a. Swing Highs and Lows:

Swing High: A swing high is formed when there is a high point with lower highs both to the left and right.

Swing Low: A swing low is formed when there is a low point with higher lows both to the left and right.

Figure 1.2: Visual depiction Swing Low

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b. Buyside and Sell side Liquidity Buy Side Liquidity: A swing high at the top of the range often triggers buy stop orders from short positions, creating what is known as Buy-side Liquidity. In this scenario, traders who were previously shorting the market and placed stop orders to buy if the price rises are now compelled to execute those buy orders as the market moves against them, contributing to increased liquidity on the buy side.

Figure 2.1: Visual depiction of Buy Side Liquidity

Sell Side Liquidity: A swing low at the bottom of the range typically triggers sell stop orders from long positions (Sell Stops), creating what is referred to as Sell-side Liquidity. In this situation, traders who were previously holding long positions and placed stop orders to sell if the price falls are now compelled to execute those sell orders as the market moves against them, contributing to increased liquidity on the sell side.

Figure 2.2: Visual depiction of Sell Side Liquidity

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c. Session Highs and Lows: Session highs and lows are liquidity levels that traders often utilize as points to draw on liquidity, potentially signaling reversals or continuations in the market. These levels represent significant price points reached during a specific trading session and can act as zones where a notable concentration of buy or sell orders may be present. Traders may observe these levels for potential opportunities and to gauge market sentiment.

Figure 3: Visual depiction of Session Liquidity

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3. Breaker Blocks 3.1

Bullish Breaker Block

The highest up-close candle before a downward move, responsible for triggering liquidity, is referred to as a "bullish breaker block." Typically, it forms a sequence of a swing low, followed by a swing high, a sweep of the swing low (creates lower low), and ultimately creates a higher high.

Figure 4.1: Visual depiction of bullish breaker block

3.2

Bearish Breaker Block

The lowest down-close candle before an upward move, responsible for triggering liquidity, is referred to as a "bearish breaker block." Typically, it forms a sequence of a swing high, followed by a swing low, a sweep of the swing high (creates higher high), and ultimately creates a lower low.

Figure 4.2: Visual depiction of bearish breaker block

Note: When the “breaker” has consecutive closes you can also use the consecutive candles as well.

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4. Fair Value Gaps 4.1

Understanding FVGs

The Fair Value Gaps (FVG) pattern is identified as a three-candlestick formation where the high or low of candlestick (1) does not overlap with the low or high of candlestick (3).

Figure 5.1: Visual depiction of Fair Value Gaps

The high of candle (1) does not overlap with the low of candle (3)

Figure 5.2: Visual depiction of Fair Value Gaps

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4.2

BISI (Buy Side Imbalance Sell Side Inefficiency)

It represents a Bullish FVG . In this pattern, price creates an imbalance by offering buyside activity, rendering the sell side inefficient. The key characteristic is that the high of candle (1) does not overlap with the low of candle (3).

Figure 6.1: Visual depiction of BISI

4.3

SIBI (Sell Side Imbalance Buy Side Inefficiency)

It represents a bearish FVG . In this scenario, price favors the sell side, creating an imbalance and leaving the buy side inefficient. The key characteristic is that the low of candle (1) does not overlap with the high of candle (3).

Figure 6.2: Visual depiction of SIBI

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Market Mechanics 5. Opening Market Dynamics 5.1

Indices opening range concept:

Stock indices experience their peak trading volume between 9:30 and 10:00, commonly referred to as the opening range. According to ICT during this time window, the Judas Swing, (discussed below), typically forms, establishing either the day's high or low. Within the opening range, the algorithm generally executes one of two commands: 1. Seek Liquidity (ERL): This involves raiding a swing low or high. 2. Return to FVG (IRL): This refers to a return to a key PD Array. Most often, these events unfold in a 10-minute window after the 9:30 open, specifically between 9:30 to 9:40. This time fractal is characterized by significant market manipulation. Novice and intermediate traders are frequently penalized for trading directly at the open due to the heightened volatility. Hence, it is recommended for traders adopting this model to execute trades after 9:40. By this time, the market's frenzy has mostly subsided, presenting traders with more stable conditions and better opportunities.

5.2

The Judas Swing:

A Judas Swing is essentially a deceptive price movement, whether upward or downward, designed to mislead traders in the wrong direction, only to swiftly reverse and penalize those who chased the initial move. For instance, if higher timeframe analysis suggests a bullish institutional order flow, the price may intentionally dip below the last accumulation's low. Once it falls below that low, retail turtle traders are lured into the incorrect side of the market. Bears find themselves trapped in their short positions, and early bulls face repercussions as their stop losses are triggered. Employing logic and thorough analysis, it's advisable to view with suspicion any rally that contradicts our bullish bias, as these often lead to false breakouts.

Figure 7: Visual depiction of Judas Swing

The manipulation swing frequently extends towards a crucial level, which might manifest as an evident liquidity pool, such as an old high or low, as illustrated in Figure 7. However, this key level can also be characterized by various other Point of Dominance (PD) Arrays, including order blocks, imbalances, and more. 19

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The Unicorn 6. Putting all together Now, with all components in hand, let's seamlessly integrate them into a well-structured whole

6.1

Opening times

Time is our most crucial element. Our executions are exclusively timed during the opening periods: ●

FX Opens: o London: 2 am – 5 am EST o NY: 7 am – 10 am EST

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Indices Open: o London: 2 am – 5 am o NY: 9:30 am – 12 pm EST We do not trade outside of the opening times.

6.2

Breaker

"The breaker stands out as one of the most potent algorithmic entry patterns, particularly when liquidity is extracted at the opening price." - ICT

6.3

Draw on Liquidity (DOL)

The most crucial element is the draw on liquidity. Price essentially engages in two activities: either running above/below a swing high/low or rebalancing an inefficiency. Consequently, our liquidity sources are swing highs/lows and Fair Value Gaps. To harness draw on liquidity, we extract information from higher time frames, aligning ourselves with the prevailing order flow on those timeframes.

6.4

Time Frame Alignment

Our analytical approach always begins from higher time frames and progressively moves to lower time frames. Time frame alignment serves as our guide to determine the frames for analysis: ● ● ● ● ● ●

Monthly PD array aligns with the Daily Entry Function Weekly PD array aligns with the 4HR Entry Function Daily PD array aligns with the 1HR Entry Function 4HR PD array aligns with the 15M Entry Function 1HR PD array aligns with the 5M Entry Function 15M PD array aligns with the 1M Entry Function

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7. The Process Understanding the locations of liquidity is imperative. The most potent breakers often encounter two layers of liquidity: short-term and higher time frame. Time frame alignment is our tool for capturing both types of liquidity. During analysis, we prioritize using a higher time frame's swing high/low or Fair Value Gap as an execution zone. Once at this higher time frame area of interest, particularly during opening times, we initiate the quest for short-term liquidity grabs (raids) to commence our entry function

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The Execution 8. Entry Protocol: 1. Establish a clear bias from the higher timeframe analysis (Daily Chart) 2. Patiently await the opening of the NYSE market at 9:30. 3. Identify the Judas Swing, discerning its direction [Higher Time Frame raid (1h)]. 4. Within the area of interest, be vigilant for a stop hunt [Short-term raid (5m)]. 5. Ensure a breaker is formed with an inside Fair Value Gap (FVG) in 5m TF. 6. Strategically place a limit order at the breaker. 7. Implement a stop-loss order just below the breaker. 8. Consistently aim for a 2RR target aligned with the established bias.

Figure 8: Visual depiction of Trade Execution

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The Discipline 9. The Order Sequence & Discipline: My order sequence and discipline when I identify my model and executions: 1. Risk Management: ● Limit risk to a maximum of 1% per trade. ● Execute no more than one trade per day. ● Restrict trading to a maximum of two trades per week. 2. Time: ● Recognize time as the paramount element. ● Strictly adhere to designated hunting hours (As my hunting hour is only NY AM KZ). ● Stay informed with the economic calendar for high-impact events. 3. Bias/Draw on Liquidity: ● Initiate analysis on the daily chart to formulate a bias using the internal > external relationship. ● Require a distinct draw on liquidity to substantiate the bias. 4. Time Frame Alignment: ● I Progress to the hourly chart post daily analysis. ● Identify hourly swing highs/lows or Fair Value Gaps (FVG) as higher time frame areas of interest. 5. Entry Function: ● Confirm criteria on the 5M chart during hunting hours. ● Ensure alignment with the established bias and higher time frame PD arrays. ● Execute trade 6. Emotional and Psychological Intelligence: ● Uphold emotional discipline and psychological resilience. ● Consistently adhere to the trading model for steadfast decision-making.

I always execute trades with the mentioned criteria, precision, discipline, and mental resilience!

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⑄ Going

Beyond “The Unicorn Edge” ⑄

As we conclude this journey through "The Unicorn Edge," the insights and strategies presented are not merely theoretical—they are a gateway to action. Now, let's delve into the real-world execution of this model.

Watch as Furqan Malick’s Youtube translates theory into practice, executing trades with precision and sharing his experiences on Twitter. For a more immersive experience and to connect across various platforms, visit bento.me/furqan-malick

In the world of trading, action speaks louder than words. Follow Furqan, witness his trades, and gain valuable insights that go beyond the pages of this book. The journey doesn't end here; it extends into the dynamic realm of the markets, where every trade is an opportunity to learn, adapt, and grow.

Stay tuned, stay engaged, and may your trading journey be filled with success and continuous discovery!

⫷ Happy Trading ⫸

⫷ The End ⫸

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