ICT YT - 2022-01-28 - ICT Mentorship 2022 Episode 4.srt

Last modified by Drunk Monkey on 2022-01-28 18:44
1 00:00:08,550 --> 00:00:17,730 ICT: Alright, folks, welcome back. So this lesson is gonna be a little bit shorter, more directed point. And we'll be looking at some examples, since I
2 00:00:17,730 --> 00:00:29,280 showed you or looking for on Tuesday night. So Wednesday's trading and Thursday's trading, we'll take a look at that. All right, first up is the E Mini
3 00:00:29,280 --> 00:00:41,160 s&p March delivery contract for 2022. Wednesday, January 26, once you take a look at this low over here, okay, and don't just use my charts, you want to look
4 00:00:41,160 --> 00:00:53,370 at your charts, and go through it from your platform, your broker, whatever feed that you're using. This is trading view, it's a free charting package, when it's
5 00:00:53,370 --> 00:01:07,410 end of data. But if you want to have real time, think I'm paying $4 a month for the data. It's not really expensive. But you want to have the low over here on
6 00:01:07,440 --> 00:01:19,230 Wednesday, the 26th. And you'll see why I picked that low there because it's the low. Okay, and then this is the high. So we have this price run from this low to
7 00:01:19,230 --> 00:01:33,000 this high. That's our range. So you want to drop your fibs on that. Now get your equilibrium price point. So as the highs were ran through, we had that run up,
8 00:01:33,150 --> 00:01:44,340 the market gets pushed into a premium to really expensive, and then we want to wait to see does it break down below? The old high? It does. But does it create
9 00:01:44,340 --> 00:02:00,780 a fear of a gap in here? No, I didn't realize one more time than breaks down again. Inside here, there's a break in market structure. We see it here. Then it
10 00:02:00,780 --> 00:02:15,810 runs back up into the fair value gap here. And then sells off reaching into this old low, which would be below the equilibrium price point of this entire range,
11 00:02:15,990 --> 00:02:31,890 or 50% level on the Fed. Okay, put some lipstick on this. Again, here's the low and the high equilibrium, which is a 50 level on the Fibonacci. So we're looking
12 00:02:31,890 --> 00:02:44,850 for a low or an imbalance below this level. Okay, so we have a swing low here. We have an imbalance here, that could be a target. Notice how we hit it there
13 00:02:45,180 --> 00:02:59,250 and came off of it more pronounced low here and draws down into that. So inside this shaded blue area, we're going to take a closer look at the details. Okay,
14 00:02:59,250 --> 00:03:09,000 we're zoomed in a little bit against the one or two minute chart, previous high, short term high and 830 in the morning, that starts the hunt. Basically, that's
15 00:03:09,000 --> 00:03:18,030 what a 30 in the morning is to me. So we're looking for an old high to be violated it does. So here then it breaks. There's a break in market structure.
16 00:03:21,210 --> 00:03:31,860 Swing low, this candle over here that sets the stage now you have a opportunity. Does price draw back up into the fair value gap after this candle breaks below
17 00:03:31,860 --> 00:03:40,560 here and giving you a bearish market structure shift? Yes, it trades up in the near Vega, you can go short there. And again, you could target this old low here
18 00:03:40,590 --> 00:03:54,060 or that low that was annotated before we zoomed in. In Look at the beautiful delivery there. So hypothetical short from here. And hypothetical cover here.
19 00:03:54,600 --> 00:04:04,440 You would log that in your study journal. Don't use my examples here alone, go into your own charts and annotate them as well. So shorting around, we'll say
20 00:04:05,700 --> 00:04:22,170 4419 and covering at we'll say 4382, just to be you know, not perfect. That's the opportunity of the range. But you don't have to have all of that. And still
21 00:04:22,170 --> 00:04:33,930 very, very nice delivery based on the logic I taught you on Tuesday and the first lesson on the previous week's Friday. Again, here's fer Vega. And that's
22 00:04:33,930 --> 00:04:47,580 your candle that would be considered as a ideal entry. And the discount old low as a target right there. So your charts would look just like this. In any open
23 00:04:47,580 --> 00:04:56,580 space like over here, you would just type in whatever important factors that you found insightful about this example. How long did it take? How long did it take
24 00:04:56,580 --> 00:05:05,790 from the market structure shift occurring? How much time did it take to get up into the fair value gap? That's real important? How long did it take before it
25 00:05:05,820 --> 00:05:09,570 went from your entry? Down to your target in time?
26 00:05:10,889 --> 00:05:23,009 How much heat or draw down? Would you have? weathered, getting short? Now, if you used this candles high as your entry point, you technically could have got
27 00:05:23,009 --> 00:05:32,279 filled here. But in here, I want to teach you to look at the total range available. And in hindsight, okay, because it gives you a framework to look for
28 00:05:32,279 --> 00:05:40,979 how these examples. While they're not exactly the same, they don't repeat exactly photocopy of every single, previous instance of it. There's a lot of
29 00:05:40,979 --> 00:05:49,679 similarities that you'll find that are reoccurring. And that's the important factor to train your eyes to see it. Remember the analogy I gave you on Tuesday
30 00:05:49,679 --> 00:05:56,549 night, about the deer track. And being a hunter, you have to know what a deer track looks like, you have to know what a deer track is the stock it
31 00:05:56,549 --> 00:06:06,719 effectively. This is your pattern in setup. So you need to go and looking for it. So it reinforces the idea that you know what it looks like. Alright, we're
32 00:06:06,719 --> 00:06:15,509 looking at the E Mini Nasdaq futures for Thursday, January 27 2022. This is a five minute chart, this is the timeframe you start with, and you work down.
33 00:06:15,839 --> 00:06:30,839 Okay. So on the five minute right away, we can see the low to the high. And we're looking for a high and go back in time in your chart. And you're fine with
34 00:06:30,839 --> 00:06:39,719 distance here. But you have these relative equal highs as well. So that could have been a initial objective looking for these relative equal highs to be taken
35 00:06:39,719 --> 00:06:45,839 out? And does it break down and give you a fear of a gap? No, it doesn't. So it wouldn't even meet the criteria there. And as some of you might be looking at as
36 00:06:45,839 --> 00:06:52,919 well, how do you know it doesn't get you on a trade here, listen to the rules I gave you. They're very specific. And that's what I'm walking you through here.
37 00:06:53,099 --> 00:07:02,309 That way you can see it's kind of allowing the market or really forcing the market to show you its hand. Once it does that, then you can go in and act
38 00:07:02,309 --> 00:07:10,679 accordingly. But you have to wait for the setup. You can't force it, you can't think it's there, it's there or it's not. So have Otah here by security resting
39 00:07:10,679 --> 00:07:18,179 above that, and we have a run above it, once it goes above here doesn't go above it, and break down and then go down below that short term low there. No, it goes
40 00:07:18,179 --> 00:07:29,249 higher. So we'll just keep waiting for a break lower to get a shift in the market structure on an intraday basis. So we have a swing low here. It trades
41 00:07:29,249 --> 00:07:36,929 down through it on this candle here. So you know right away at that moment on this candle, as soon as this candle trades through it, you now have an
42 00:07:36,929 --> 00:07:49,469 opportunity, then you go back into the high to that candle slow and do you see a fair value gap? It's right there. Okay, this market rallies back up, trades into
43 00:07:49,469 --> 00:08:00,029 it here. You can be a short seller there in the market breaks down one more time we traded back into it and reaches below the equilibrium price point. And he has
44 00:08:00,269 --> 00:08:07,589 a couple targets here you could be here, here or in the in balance and it hits all of them and goes a little bit further lower
45 00:08:13,470 --> 00:08:23,040 Alright, so that was quick and hopefully painless. And again, we're looking at internal range liquidity and market structure shifts, intraday. My advice is for
46 00:08:23,040 --> 00:08:35,520 you to go back through more data. Use the weekend that's coming and acquire more of those examples so that we can include them in your study journal. Next week,
47 00:08:35,880 --> 00:08:42,540 I'll work on targeting refinement and entries. Until Talk to you then enjoy your weekend. Be safe