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TheRookAlgo ICT DR
The Rook Algo is a powerful indicator that is useful to identify the current state of the market, it give information about the current dealing range created after price takes both sides of the market as ICT teaches. The indicator give buy and sell signals depending of the market sentiment, it works in all timeframes can be used only in one but the real benefits comes when it is used with a Higher timeframe reference.
How it works?
The Algo analyze the current and previous market structure to identify current ranges and dealing ranges, it give information about the market with the table located in the corners. The table will tell if the market is expanding higher or lower, retracing into the range, consolidating, if a move failed. Will tell if we hit discount or premium, if we might be in a turtle soup enviormment and finally If the range is small or big compared to the previous one. All this is helpful to quickly identify current market context and direction. Is important to keep in mind that this works better in trending markets must be avoided during consolidations. The algo will tell information about current range, current dealing range and previous dealing range. Is ideal to take entries when the 3 are in sync.
Once the indicator detect current market state it will plot an arrow right after the current candle close telling the possible
Market sentiment and probable direction. This signals can be tricked during consolidations. But when we are trending they work very good.
The light green arrow is plotted when price hits discount and is in a bullish enviormment and price makes a close above previous candle high. The dark green arrow is plotted when we are bullish and price makes an impulse and break the range.
The light red arrow is plotted when price hits a premium in a bearish enviormment and price makes a close below previous candle low. The dark red arrow is plotted when we are bearish and price makes and impulse breaking the range.
The white arrows are plotted when price makes a break out or change of current market state and this is counter to the current market enviormment meaning if we are bullish and we get a down impulse white arrow will be plotted. Then same if we are bearish and price makes an up impulse will plot a white arrow. This ones are usually traps but can also be a real breakout. It depends of the market context in the higher timeframe.
The Algo have the option to plot current ranges that are the lines with the cross, this lines change color depending of the market sentiment and market structure. Light Green for bullish expansion and light red for bearish expansion. Dark colors appears when the range is closed. The equilibrium price is plotted in gray, it change to black when it detect contraction and to white when detect expansion of the ranges.
ICT dealing ranges are plotted in white lines with the equilibrium point in yellow. This lines only appear while price is respecting the range and is consolidating inside and price is not expanding.
The indicator also draws some label lines to easily identify the current range and dealing range and if you want the previous dealing range. This line also tell you when price make a Break of structure and where is the ideal change or character for the timeframe we are looking for.
Lastly the The Rook have the option to enable colors in the bars this is helpful to quickly identify the market state, when price is aliged with the current market sentiment light green or red colors tell us that price is in a premium or discount. Dark and gray colors means price is already in an impulse. And finally when there is an absent of color means price is change current state similar to the white arrows. By default this colors are disable. You can edit in settings
How to use it?
After understanding how the rook communicates we can use it to follow the market direction, the best way to use it is waiting for the Range and dealing range a to be aligned for increasing probabilities we can wait for the previous dealing range too, one that’s in play we just wait for a premium or discount light green or light red signal to enter targeting first the break of the range and then holding for profits while is expanding until we get an opposite signal. This give us the possibility to hold for really big runs. See the picture below. This can be used in any timeframe so depending of the timeframe those ranges might be different but the key is to be align also with a higher timeframe direction.
How it works?
The Algo analyze the current and previous market structure to identify current ranges and dealing ranges, it give information about the market with the table located in the corners. The table will tell if the market is expanding higher or lower, retracing into the range, consolidating, if a move failed. Will tell if we hit discount or premium, if we might be in a turtle soup enviormment and finally If the range is small or big compared to the previous one. All this is helpful to quickly identify current market context and direction. Is important to keep in mind that this works better in trending markets must be avoided during consolidations. The algo will tell information about current range, current dealing range and previous dealing range. Is ideal to take entries when the 3 are in sync.
Once the indicator detect current market state it will plot an arrow right after the current candle close telling the possible
Market sentiment and probable direction. This signals can be tricked during consolidations. But when we are trending they work very good.
The light green arrow is plotted when price hits discount and is in a bullish enviormment and price makes a close above previous candle high. The dark green arrow is plotted when we are bullish and price makes an impulse and break the range.
The light red arrow is plotted when price hits a premium in a bearish enviormment and price makes a close below previous candle low. The dark red arrow is plotted when we are bearish and price makes and impulse breaking the range.
The white arrows are plotted when price makes a break out or change of current market state and this is counter to the current market enviormment meaning if we are bullish and we get a down impulse white arrow will be plotted. Then same if we are bearish and price makes an up impulse will plot a white arrow. This ones are usually traps but can also be a real breakout. It depends of the market context in the higher timeframe.
The Algo have the option to plot current ranges that are the lines with the cross, this lines change color depending of the market sentiment and market structure. Light Green for bullish expansion and light red for bearish expansion. Dark colors appears when the range is closed. The equilibrium price is plotted in gray, it change to black when it detect contraction and to white when detect expansion of the ranges.
ICT dealing ranges are plotted in white lines with the equilibrium point in yellow. This lines only appear while price is respecting the range and is consolidating inside and price is not expanding.
The indicator also draws some label lines to easily identify the current range and dealing range and if you want the previous dealing range. This line also tell you when price make a Break of structure and where is the ideal change or character for the timeframe we are looking for.
Lastly the The Rook have the option to enable colors in the bars this is helpful to quickly identify the market state, when price is aliged with the current market sentiment light green or red colors tell us that price is in a premium or discount. Dark and gray colors means price is already in an impulse. And finally when there is an absent of color means price is change current state similar to the white arrows. By default this colors are disable. You can edit in settings
How to use it?
After understanding how the rook communicates we can use it to follow the market direction, the best way to use it is waiting for the Range and dealing range a to be aligned for increasing probabilities we can wait for the previous dealing range too, one that’s in play we just wait for a premium or discount light green or light red signal to enter targeting first the break of the range and then holding for profits while is expanding until we get an opposite signal. This give us the possibility to hold for really big runs. See the picture below. This can be used in any timeframe so depending of the timeframe those ranges might be different but the key is to be align also with a higher timeframe direction.
כתב ויתור
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