How to Establish Narrative (ICT Simplified)

this video, we'll go over how to establish a narrative, which is essentially the core concept of every ICT trader's model, or at least it should be, no matter if you're a swing trader, a short-term trader, or even a scalper. Um, you should have narrative as a foundation to framing your trades. So, what is narrative? Um narrative is understanding what price should do and the reasoning behind it. So essentially knowing if price is either drawing higher or lower um using higher time frame reasoning. Right? So this is very important so that you don't get caught in trying to pick tops in a bullish market and just getting wrecked and losing a lot of equity. Right? So right here some may see this bearish candle and try to short right and then get stopped out. It might short up here might short right here. So this is essentially dumb money trying to pick a top in a bullish environment where the draw is right here. So when the draw is not hit, we will continue to be bullish until we have met the draw. So the importance here is that you don't get caught in trying to pick a top before the draw liquidity is taken. So what makes narrative? So narrative is essentially made by higher time frame true reversals and a true reversal is when price engages a key level a higher time frame key level with a crack in correlation. So as an example SMT or a PSP a precision swing point which I do have a video on if you guys don't know what that is. So essentially you want to trade in line with the higher time frame true reversal. Of course you can still have lower time frame true reversals opposing the higher time frame one but these will just act as retracements. That does not mean they are not uh tradable. As an example, in a week you could have a bullish narrative but still have one day or two days where we do make a bearish um dlos candle as our daily close. So essentially that day was bearish. You can still trade that, but don't expect to hold the trades for as long, right? They won't last as long and they won't be as explosive as clean as if you're trading in line with a higher time frame true reversal. Also, uh the highest probability higher time frame true reversals will have a market maker model sequence. So right here you have an example where price engages this key level which could be a swing low or a swing high if you're