Hello smart Money traders welcome back to the channel in this video I want to show you how to trade synthetic indices with ICT concept A lot of you guys have actually asked me to make this video and I'm making this video so I can show you how to basically approach syntheticIndices such as volatility index 75 volatility index 100 and step index all these indices that you want to trade with ICT concept but there are some major key things you need to know if you're trading synthetic indices and these are some of the concepts in ICT that are very very important the firstOne is basically how to normally interpret order flow and then you need to have a basic understanding of Market structure and you need to know what are the institutional reference points that synthetic indices really really respect so let's get into explaining these major key things you need to know before youCan trade synthetic and this is the first one is order flow order flow is basically understanding where price is going exactly as you can see here if you look at this you see from here to here we have a bearish order flow that is simply what an order flow means and fromHere to here you can see series of lower lows and lower highs which means this algorithm is pushing the market downward and if you have an upward or the flow that is an uptrend it is basically going up in that direction so that is basically what an order flow is now weWill couple what an autoflow is with Market structure Market structure is basically when you see price actually breaking every single high or every single low that was created as price moved from one point to another what that means is that we have three market conditions we have the first one anUptrend which moves in an upward direction we have a downtrend then we have a consolidating market where you see Market Moves In One Direction so these are the three major things you will always see the market do so let's start by sketching an example of anUptrend then we can do a downtrend with the market structure then we can also talk about a ranging Market when you see Market moving something like this creating highs and you see something like this coming down creating another high you see market doing this this is basically what we call an uptrendBecause we can literally see a series of higher highs this is what we call a higher high this is another higher high and this is another higher high this is another higher high then likewise this is another higher high as you see Market though do this time and again you willUnderstand that market is moving up and this is a higher low another higher low a higher low right here a higher low which means this high is lower than this high and this high is higher than this high as you keep seeing it now what we call a market structure is this entireMovement we have an exact structure so every time we see price push from here okay and break Above This level we can say we have a break of this structure okay price move from here to here create structure as it retraces into this structure that we see right here let meJust make it like this something like this so you can see it clearly so as price comes back we have created a structure once we push outside this range we can say to have broken a structure and then right here when you see price comes to this place and have aBreakup structure at this point right here let me just give it to you at this point we also have a break of structure at this point because this structure is exactly something like this this range let me just adjust it so you can see at this particular rangeI hope I get that correctly this video is going to take long because I want to make sure that I give you the basic but I will continue more videos on synthetic indices for you so you can have a basic understanding of that we have another structure broken right hereIf you can see Market pushes above here a breakup structure a breakup structure at this point so these are what we call an uptrend when you see Market do something like this you have an uptrend A downtrend is the exact opposite of this when you see Market creates something like this youSee pushing down having a retracement pushing down having a retracement pushing down having a retracement like this um You can call this a downtrend a downtrend is different from an uptrend simply because we have a downward Direction and when you see a lower high this is a lower high we call this aLower high a lower high a lower high a lower high this is a lower low a lower low a lower low and a lower low okay so when you see Market pushes below here we have broken a structure right here because we've created structure from here within this range to this place asPrice breaks below it we have a breakup structure right here another breakup structure which we can visibly see I'm taking time to explain this so you cannot have difficulty in interpreting this backup structure I will show you that practically when I come to the Chart you're going to see how toLiterally view these things and have that this is an example of an uptrend and we will talk about breakup structure clearly in that these are the very basic things you need to know before you can trade synthetic indices with the ICT concept effectively okay so once you understand that as price keeps movingSometimes you can find another block acting as a support level in an upward Direction when you see Market moves in this direction you're going to see a other block acting as the support in this level once we go to the Chart you're going to see what I mean by thatSo A ranging Market is basically when you see price actually behaving within two range when we have a market like this and then you see price actually acting like this is creating this movement let me make sure that I'm able to do this correctly price moving in this direction upwardAnd then creating this kind of movement okay you see price pushing even above it and then creating this kind of movement so once we see this we call it a ranging Market the market is neither upward or downward it is just moving in a Consolidated State okay so these are theThree market conditions you're expected to have if you want to learn Market structure correctly the next one is of course institutional reference points we have almost seven of them let me quickly type them so you can see so these are the institutional reference points thatYou want to pay attention to you have to learn how to see a breaker block a mitigation block a favor lookup and other block these are important institutional reference points I wouldn't want to go into explaining this so as not to make this video too long but you can find in-depth tutorial onBreaker blocks mitigation blocks favor lookups on my YouTube channel I even have them as a playlist simply come to my YouTube come to playlist you're going to see a breaker block a mitigation block and then the breakup look right here all the videos are there there are some very important institutional reference pointsThat you need to know about and if you know other block you know if I look up we're going to continue with this let me just simply go to my mt5 and then I'm going to show you how to go about that this is the dailyTime frame so what I want you to learn is to understand all the flow I don't want you to go into having too much data the highest time frame you want to use is the daily time frame so you cannot have too much data just get the dailyTime frame bias and then you're gonna have the best other flow you want to learn so right here let's look at the most recent data right here looking at this you can see Market has just pushed from here to here from this level to this level from the daily time frameWe're going to learn how to do Market structure on vix first then we drop down and we'll go down to top down analysis onto when we see an entry so you can have an understanding of how it works in a literal market so this is mt5 I mayNot be able to do different drawings right here but the downtrend can be seen right here let me just show you what the downtrend looks like when you see something very clearly let me just have a example of a very clear downtrend so you can see most of the things I'mSeeing are uptrend let's go and check if we can see okay right here I see a very perfect example of a downtrend let's see this particular one this area Okay so as price comes from here to this level even push to this area to this level we're gonna draw our Market structureCorrectly from here to here okay so we look out this swing from here to this level so this is the low that price actually created okay from here to here so in identifying structure you want to identify the lowest level which is this level as where the structure is while if youWant to see this structure has been broken you want to see that this low has been completely traded through by the body of the candle like the one you can see here okay as price pushed from here to here this was the low that price created and then you have this movementThis retracement one two three four okay so from here you can say this is the low and then this is the retracement and another push where we see this Market structure being broken was exactly from this particular candle let me expand it a bit so you can see what I'm saying this particularCandle can you see the body of the candle actually pushed outside outside this level so this is where we had our break-off structure okay so what next do we look out for as price came to this area created this law this last law that price created after this retracement letMe just adjust this a bit after this retracement push down here created this last low and price pushed to this level so this is our structure what we look out for from here is to wait for price to come and break this level with theBody of the candle once we see the body of the candle push outside this we know that this structure has been broken by the way this is vix 75 volatility index 75 so this is a breakoff structure even if I'm not able to finish this in thisVideo I will do the rest in another video I'll put them in a playlist okay so from here to here we have a breakup structure to this level and then we've created another structure right here can you see the law here that we have a breakup structure here yes we have aBreakup structure and then where did we see another law this is tempting but this is not a low the next law is displaced this particular place can you see this is the lowest level we just take our drawing tool and see if the body of theCandle has traded through this low so we can say that we have a breakup structure so this is a breakup structure so as price keeps going down like this we are in a downtrend and then don't forget the highest level as price comes back and takes the highest level anytime priceComes back to take this highest level we can say that we have a change in Market direction from this downtrend we will look at this level from here to here once we see price traded above it we can see this Market has turned to an uptrend okay from here we'll just Mark theHighest level and that it will be our Benchmark so this is an uptrend then we keep seeing until when we take out this low we have not turned to a downtrend in this regard okay so let me show you an example of an out Trend in this regardThis is an uptrend from here here to here where did the uptrend started can you see this is a breakup structure right here at this level and then since from this place we have another breakup structure right here this one is a breakup structure breaking this lowest level then we'reGoing to focus now majorly on this high this high so until we take out this High we are not in an uptrend so we will mark this high and see if price will actually take it out yes price have traded through it from this candle so now weAre in an uptrend so we look at this and then we will push to this level this is a breakout structure another breakup structure here yes a break of structure this is not like trading view drawing here is a bit difficult that is why I'm still finding difficulty to this levelThis is also a breakup structure as small as it is then this is a breakup structure where is the lowest level this time around this is the lowest level we want to see price take out before we can say we have turned to a downtrend soFrom here we'll just Mark out this level and see where price of taking out at this point we have turned to a downtrend so I hope you've seen how these things work a consolidating market is basically when the market is just within a range something like this let me show you thisCan you see this range and this place so in between this we have Market just behaving like this let's look at how to do a top-down analysis on this understanding of Market structure now once we go back to the most recent data anytime you come to this chart what youShould look out for is to look out for the most recent data okay now this is our most recent data right here so this is where we're going to look at I know exactly what to do once we are able to see this most recent data or now look atThis and do our Market structure delineation from there so from here we can see this is a major downtrend from here we have a breakup structure at this point at this level every cost structure at this point so if you're trading this what you do is that you look out for institutional referencePoints it basically that's what the market does well let me even show you from here can you see this movement if you can see this movement from here we have a change of Market direction or shift in Market structure and price came back to this level as price is comingBack what you should look out for as you see this this is a breaker movement can you see if you learn how a breaker looks like you're going to learn this properly a breaker is simply when you see Market push like this and have a address man and then quicklyPush below and take liquidity here and then pushing up above this place now once you've taken out this level this is the breaker the last bullish candle that price printed here in this regard we call it a bullish breaker block because as price comes back it is going to justReact from here please watch those videos for you to learn break a block properly as price comes here we expect to take trade from there so from here as you see price came to this level pushed above and then take liquidity below here rather before pushing up as price cameBack this is your breaker block right here this last bullish candle is your breaker block so as price came back and hit this and then it kept on moving so this is basically how to look at this in this perspective but from the most recent data we're going to look at thisArea as we see this breakup structure will drop down to the four hour time frame and see what is happening from there we know mind you from the daily time frame know that we are in a bearish order flow from here we drop down to theFour hour time frame where we are going to make our trading decisions while you're watching that you are also going to delineate this from the four hour time frame look at this and then make your drawing from here to here breakout structure okay a breakup structure now you're aligning your higher time frameWith the lower time frame okay this is a breakup structure this is an order block right here another block right here okay and then a favor look up right here in between this line a favor look up here too right here so as price comes back toThis area look at how price respected this favor look up this fever look up right here now for you to get an entry in this kind of regard you can also go down to the one hour time frame and look at how that is going to be so as priceIs coming remember our perfect entry technique as price is coming back you're going to measure the rhythm of the market the bigger time frame formation is telling you something like this let me show you the bigger time frame is telling you a bearish movement from here to here as the retracement is comingYou're going to measure this Rhythm and see how price is behaving now once price takes out this last low you want to wait for it to come back to either an auto block or a favor look at before you take it right from there so as price comes back you're going toMeasure the rhythm of that market so look at this as price is coming back had this retracement and look at this price actually block structure right here let me just show you this properly a breakup structure right here the body of the candles have traded through this levelSo this is a clear breakout structure that everyone can see so now what do you do you wait for price to come back to an Institutional reference point okay so look at this is your entry as price comes back so this is an entry in theOne hour time frame you can even go down to the 15 minute time frame and have a better entry if you want to have that you can see Market having this movement let me just reduce that as Market is coming push push came down push at thisRetracement push look at this a major turning Market Direction and then this is your entry into this favor lookup let me show you this favor lookup right here let me change the color of this so you can see I'm just taking time to explain this soYou can learn how these things work in the 15 minute time frame this is your entry this favor look up just your normal ultimate thread entry strategy I've taught I'm going to show you the video is here if you want to watch the video you can simply come here I hope itIs here the ultimate thread entry my secret threat entry confirmation this is it this video you need to watch it for you to get this properly so as price is retracing back into this area take out this level as price came back to this favor lookup this is your entryThis is mt5 is online trading view I could have shown you better things so that is how to look at this now if you're using the four hour time frame to measure movement you're going to always pay attention to that kind of movement okay I hope you're watching this andYou're learning how this entry came about so the way volatility index or the synthetic indices works is that you don't have to worry yourself about sessions or news or whatever is a disadvantage to other Forex or other asset Traders all you have to do here isTo just trade what the rhythm of the market is giving you okay so if I go to the one hour assuming I want to trade from here and I'm looking at this other flow from this regard just looking at this from this regard look at this let'sJust look at this entire market movement price came from here to here have this retracement and this is where we see a complete breakup structure at this point this is a breakout structure guys what do you do you look out for an internal retracement into an internal range liquidity look at this areaDo we have a breakup structure here or change of character no we do not have a change of character here but price is coming down to this area and then this is your order block this guy it's your order block even though this thread did not give you an entry you're looking forLook at what happened you will go down to the five minute or the 15 minute time frame and watch how the retracement came into that area before you can fall into trading this annoyingly remember this is where the higher time frame or the block is did you see any change of characterHere no so that means if you are taking this from the one hour blindly you are only taking it at your own risk as price is coming back to this area because you did not see any lower time frame change of character remember that video I toldYou to watch if you watch that video you're going to get everything I'm saying so as price is coming back you won't want to see how this is reacting even if you are going to the 15 minute to look for an order flow before you can take trade you will use the samePrinciple and the same formation so I will make more videos let me stop from here guys I'll make more videos on how to take a trade with volatility index but make sure you watch this particular video as soon as I close this I'll make another video again explaining how toHave an entry with volatility index and how to get the perfect entry that will give you the best thread using synthetic indices thank you guys for watching I don't want this video to go longer than this I'll make more videos explaining that thank you for watching see you in another video