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ICT YT - 2022-04-30 - ICT Mentorship 2022 Episode 22.srt

Last modified by Drunk Monkey on 2022-04-30 15:54
1 00:00:05,160 --> 00:00:17,580 ICT: Alright folks, welcome back. This is the ICT mentorship free YouTube mentorship. For 2022. Hope you're doing well hope you had a wonderful
2 00:00:17,670 --> 00:00:28,980 opportunity to study and learn this week and keeping up with the lessons. So we are looking at the E Mini s&p daily chart, this is June delivery contract month
3 00:00:29,790 --> 00:00:41,730 for 2022. And I want to kind of like, bring you back up to speed to what we were looking for over the last weeks or month or so. Remember, back here, we had that
4 00:00:41,730 --> 00:00:52,140 bearish order block, I outlined that as an area to watch that and we're entering a seasonal tendency, so we're expecting lower prices, we got lower prices, I
5 00:00:52,140 --> 00:01:02,790 showed you the relationship between the dollar because it's risk off. So we have all the decline taking place in the equities markets. And I said that we would
6 00:01:02,790 --> 00:01:14,670 be likely to draw down into this relative equal low. So I'm going to kind of like do things in the trading view platform. So that way, sadly, some of you
7 00:01:14,670 --> 00:01:23,190 folks that are asking questions in the comment section, like how do I do this and where I was at some of the platform. Admittedly, most everything I know
8 00:01:23,190 --> 00:01:36,420 about trading view, my own students have taught me. So there's going to be a comment posted and pinned by me on the link this video. It'll be trading view
9 00:01:36,420 --> 00:01:48,150 tips, okay? If you have a tip that you want to share with the viewers that are new to trading view, please, by all means, just make a post and outline it as
10 00:01:48,180 --> 00:01:58,200 best you can. I'm sure there'll be well received, I might even learn something too. Alright, so we're looking at how the market did in fact, trade down into
11 00:01:58,200 --> 00:02:07,800 our relative equal lows. So this was the draw on liquidity. Okay. Now, when I train my students, and when new students come to me, the first thing they want
12 00:02:07,800 --> 00:02:17,700 to know is how to pick the right order block. Because they know it's one of my concepts they want to know, which is the entry candle. What's the entry point?
13 00:02:18,540 --> 00:02:30,990 Where do I get in it? Okay. And that's the easiest thing out of all the learning, okay? Once you understand what the markets likely to do, where it's
14 00:02:30,990 --> 00:02:43,380 going to draw to, okay, where's it going? Why should it get there? Okay? If you do majority of your studying, and watching the tape, okay, reading the tape,
15 00:02:43,800 --> 00:02:54,510 which is kind of like what I'm going to outline and showcase in the live streams in May. Just before I get any further in this conversation, the live streams
16 00:02:54,510 --> 00:03:08,850 will only be in May, I'm not trying to make a ongoing thing. This I don't want to promise, you know, an ongoing thing. But I am going to showcase some things
17 00:03:08,880 --> 00:03:17,970 in live sessions. That way you can see how to train yourself to look for these things. Okay. I will not be giving you trade recommendations, okay, I will not
18 00:03:17,970 --> 00:03:26,760 be entering trades in front of you. I'm gonna be outlining basically what you saw me do in his mentorship outlining where this is gonna go and it went there.
19 00:03:28,620 --> 00:03:37,560 I'm gonna be doing that with intraday charts. Okay, and I'm gonna point out certain areas to study, watch how price reacts right here and look for this type
20 00:03:37,560 --> 00:03:48,240 of thing to occur here. Because I want you to understand what it's doing. Why is it likely to do what I'm going to outline? Okay? The best thing that can happen
21 00:03:48,240 --> 00:04:00,570 is for me to get it wrong sometimes. Okay, so that way, it'll disarm you. It'll feel like okay, well, you know, if I don't get it, right. ICT himself didn't get
22 00:04:00,570 --> 00:04:08,970 it right here or there. Okay, so I'm going to do my best obviously, to try to educate you and show you what I think is going to happen. But invariably,
23 00:04:09,570 --> 00:04:20,940 there's instances is going to creep in, it's not going to be accurate, okay, I'm gonna read it wrong. And it's fine. Do not, do not take what I'm saying in my
24 00:04:20,940 --> 00:04:31,050 commentaries and or my opinions over the chart that's going to be live. Don't take that as trade advice, do not take a trade. And I'm gonna say this every
25 00:04:31,050 --> 00:04:40,320 single time I do the live stream. Don't act on it, because you don't know what I'm doing. You don't know what I'm viewing. You don't know what I'm trying to
26 00:04:40,320 --> 00:04:49,860 teach you. None of that. Okay. So you want to sit still and just observe and take notes. They will be recorded. They will be on the YouTube channel for those
27 00:04:49,860 --> 00:04:54,990 individuals that are not going to be able to be present. When Will those live streams take place?
28 00:04:56,550 --> 00:05:05,700 There will be a New York session between a I think I'll start around eight o'clock in the morning. So that way we can get the chart set up, I'll give you
29 00:05:05,700 --> 00:05:15,090 my views overnight what took place and what I think they cannot counter me present in a kind of like build the mindset, I will not be talking in the chat
30 00:05:15,090 --> 00:05:22,650 room. Okay, the little chat thing on the side, you know, you guys will be saying whatever you want to say, I don't care, I'm not going to be looking at that.
31 00:05:22,890 --> 00:05:32,820 Because it'll be a distraction, the agenda that I have for that particular day, it would be very distracting for me to, to read comments and questions. And
32 00:05:33,390 --> 00:05:42,900 because I know your question is important to all of you, no matter how simple it may be, I'll feel compelled to want to answer everything that flashes across the
33 00:05:42,900 --> 00:05:53,400 screen, and it will disrupt my concentration. So I won't be looking at the chat, okay. I'm not ignoring everybody. For the sake of being rude. I'm just ignoring
34 00:05:53,400 --> 00:06:05,100 everybody, so I can stay on task. Okay, so there's that. But we'll begin around eight o'clock in the morning. And we'll close it, you know, whenever I feel the
35 00:06:05,100 --> 00:06:16,020 need to do so. But I'll be willing to go up to 10 3011 o'clock, okay, which is a very long, long session. I know. They may not, although that way, I won't be
36 00:06:16,020 --> 00:06:26,220 doing it everyday either. So it'll be a handpick selected day in advance that you'll know about. And I'll post it on the Community tab on my YouTube channel.
37 00:06:26,370 --> 00:06:37,230 Okay. Alright, with all that stuff out of the way, let's get back into the nitty gritty here. So I outlined this area here in this low. And I said this would be
38 00:06:37,230 --> 00:06:48,630 the draw on liquidity. So when you're on trading view over here, there's a little segment where you can have a choice of certain things. Now you can do
39 00:06:49,170 --> 00:06:58,650 this. So it looks like this is your your Bullseye where the markets will draw to, you're aiming for that, in other words, or you can use the little magnet
40 00:06:58,650 --> 00:07:12,210 icon, I teach with that analogy, like up here. Imagine, you know, a magnet of some kind down here. And price is going to be drawn down to that level here. So
41 00:07:12,210 --> 00:07:22,170 this is where the liquidity was. And he tapped into it today. Right? He knew about it up here. He knew about the order block up here, you know about the
42 00:07:22,170 --> 00:07:35,760 seasonal tendency outlined. And we have this really nice decline here. So I'm going to take you into the marketplace and strip this down a little bit and give
43 00:07:35,760 --> 00:07:38,310 you some more details. So we're going to the hourly chart
44 00:07:43,980 --> 00:07:44,730 and
45 00:07:52,259 --> 00:08:03,779 this is why I do PowerPoint slides, it's real easy to get to where I want it to be. Alright, so we had a run here, yesterday just kept pumping higher, higher,
46 00:08:03,779 --> 00:08:16,229 higher, higher, higher, just fell short of this high. And then we had a decline. And then the normal pause and the gap down, then rallied back up. So between
47 00:08:16,229 --> 00:08:28,049 this candles low in this Campbell's opening, right in here, that's an imbalance coupled with an actual gap. So I want you to take a look at that.
48 00:08:40,740 --> 00:08:53,250 Okay, now, we have this candle here, small little piece of that one here, this one, this one, this one and this one, they go just above that area here. This is
49 00:08:53,280 --> 00:09:05,190 permissible price action. In other words, this is something you have to get used to, okay, look at the bodies of the candle. See how they're staying inside of
50 00:09:05,190 --> 00:09:21,090 that imbalance. It reaches for liquidity and stops on these wicks, but the bulk of the volume is being held inside of this imbalance. Notice that so now we have
51 00:09:22,770 --> 00:09:38,670 the market release, go to the downside. And then here is nine o'clock in the morning. I want to go into 830 Actually Cisco down to a 15 minute chart. So
52 00:09:38,670 --> 00:09:52,110 here's 930 That opening price here at 930. What's actually happening is the equities are opening up the stock market starts trading that's when you hear the
53 00:09:52,110 --> 00:09:59,970 bell ding ding ding you know, sudden everybody's clapping their hands on TV, whatever. That's what's occurring here. It's opening. So it's running a show
54 00:10:00,000 --> 00:10:16,620 Short Term high right here, and then breaks lower creates an imbalance here. So on the 15 minute timeframe, what do we see? Did it take a high out? Yes? Did it
55 00:10:16,620 --> 00:10:26,070 break below low? Yes. Was it displacement? Yes, it was energetic. Good. We trade back up into here. Yes. So in here, you could be a seller and get in sync with
56 00:10:26,070 --> 00:10:35,250 the run to try to get positioned for if you are a swing trader or short term trader, this could be your entry and an aim for that old, relatively equal low,
57 00:10:35,250 --> 00:10:48,810 which is that blue line here, remember, the two equal lows on the daily chart? I drew a line on this with this is here, okay. And random into it today? At 830.
58 00:10:53,130 --> 00:10:55,830 Right there, we're using the opening price.
59 00:11:03,180 --> 00:11:15,300 The price straight above it? Yes, it's in a premium. It's above an old high. That makes it a premium tip. I saw I believe it was the only and I apologize, I
60 00:11:15,300 --> 00:11:22,290 don't recall. And I didn't make a note of your name. So please don't be offended. But I know, I saw it where it was saying something to the effect that
61 00:11:24,270 --> 00:11:37,980 you don't understand how it could be in a premium. Because it's above an old high. Anytime the market trades above an old high, that is a short term premium.
62 00:11:38,610 --> 00:11:51,810 Because it's going into liquidity. Anytime the market trades below, an old low, that's a discount. Okay. Now just like the purposes of what people use,
63 00:11:52,110 --> 00:12:02,730 overbought, oversold indicators, things can be overbought and still go higher. Things can be oversold, or in a discount, and keep going lower. Okay. So that's
64 00:12:02,730 --> 00:12:15,510 why I'm suggesting that when people are studying price, they can't just assume that an indicator is overbought. So therefore, it's a good sell, or a shorting
65 00:12:15,510 --> 00:12:27,420 opportunity. It's not always. But if you understand the narrative, within market structure, market structure is not the answer. It helps you frame an idea. But
66 00:12:27,420 --> 00:12:35,910 the idea must be in alignment with the present narrative narrative is is why should the market go where you think it's gonna go? On that particular day,
67 00:12:36,540 --> 00:12:45,960 based on the climate, the economic calendar events, and the volatility that's being offered for that particular trading session or day. So these are all
68 00:12:45,960 --> 00:12:53,100 things that you're going to need to study. And I teach on this YouTube channel. And I'll teach a little bit more when we're doing a live session. Because it'll
69 00:12:53,100 --> 00:13:00,150 be more practical than that, where you're over my shoulder, you're looking at it just like I'm looking at it. And I'll give you my internal dialogue and kind of
70 00:13:00,150 --> 00:13:10,410 like what I'm thinking that is the most salient at the moment so that we Your attention is on the right things at the right time. But power three, which is
71 00:13:10,410 --> 00:13:25,200 the open, rally up or manipulation, creating high, and then the movement lower and in distribute their shorts below a layer, an area where there would be
72 00:13:25,230 --> 00:13:38,130 stops. So smart money would be selling short, the buy stops here, writing this out, and offloading their shorts to sell stocks below those relative equal lows.
73 00:13:40,230 --> 00:13:47,550 Remember, when we see these relative equal lows on the daily chart, traders are gonna look at that as a breakout. There's lots of traders out there that have
74 00:13:47,550 --> 00:13:54,930 long term trend following systems and models. And if it breaks below those areas, they want to be short. So that's going to flood the market with what
75 00:13:56,490 --> 00:14:06,360 market orders to sell at the market. Well, that's a perfect counterpart to smart money being shored up here, because they want to buy it at a lower price. And
76 00:14:06,360 --> 00:14:16,170 while up here, they're aiming down here. Is it hard to believe that when we were already outlining that last week, and the week before? No, we have visibility,
77 00:14:16,170 --> 00:14:26,490 we have the ability to forecast certain things that should repeat if the algorithm is in fact in control, and we understand what the algorithm is doing.
78 00:14:27,180 --> 00:14:40,860 And I'm suggesting that my experience should indicate that we have that does it deliver? Here it is. Okay, so you're taking the logic of certain principles and
79 00:14:40,860 --> 00:14:50,880 concepts and blending them with market structure. We're looking for lower prices and should reach for specific low, but also how does the present narrative allow
80 00:14:50,880 --> 00:15:03,480 for engagement with the daily range or power three? Everything I've taught you. So it's the open rally Smart my interest near the high today of all the opening,
81 00:15:04,500 --> 00:15:25,080 and they get out down here. And an important low in the market closes near the low today. Let's go into a five minute chart one, two relative equal highs, you
82 00:15:25,080 --> 00:15:31,380 see that. Now if you're looking at the lower timeframe charts and you get this, because it's no longer useful
83 00:15:33,570 --> 00:15:42,270 if you're looking at that like that, here's the opening price, you know, there's what resting above that buy side. So buy stocks or buy sell liquidity is the
84 00:15:42,270 --> 00:15:51,570 resting here. So it can run up. And just to the left of that also, you see these highs here, they're real close to one another too. So for good measure, they
85 00:15:51,570 --> 00:15:59,610 might want to come up here and clean that out. This is a little too much. I think it's too rich for the expectation to get to that high. But and here's
86 00:15:59,610 --> 00:16:12,540 reasonable, but here at least, okay, market punches up through Yes, it does take those out. Then it breaks down, comes more time back above the opening price,
87 00:16:12,780 --> 00:16:22,710 and then gives up the ghost and aggressively runs for the sell side below here. Now for some of you, that would be enough. Getting shored up here, buying back
88 00:16:22,710 --> 00:16:30,090 below the lows and being done and walking away. There's nothing wrong with that if that's your model. But we're going to take a closer look inside of this area
89 00:16:30,090 --> 00:16:32,190 here and see what we see.
90 00:16:39,660 --> 00:16:45,000 All right, it's dropped down into I'm just gonna go right to the one minute chart just to save time.
91 00:16:58,710 --> 00:17:19,320 All right. So we have in this area, what a market rainbow there's relative equal highs. Here they are here. The market runs up. And it breaks down right here.
92 00:17:21,300 --> 00:17:33,180 See that right here? That's a swing low. breaks below it was a displacement. Yes. Does it Mark come back up into this little area here? Yes. Is it about the
93 00:17:33,180 --> 00:17:44,910 opening price? Yes. Is that enough sugar this, you can be short there, you have to whether this one more run up into your entry, you may have a little bit of
94 00:17:44,910 --> 00:17:54,450 drawdown. But your stop loss if you're ending in this fair value gap. Your stop has to be above the very minimum, the candle that creates the fair value gap
95 00:17:54,480 --> 00:18:06,450 that's here. So your stock is going to be above that. For good measure conservative up here. Oh, but ICT that's a lot as a big stop. Well, look how
96 00:18:06,450 --> 00:18:13,710 volatile it is. You want to be knocked out of the trade prematurely? Or are you just concerned about making the maximum amount of money on your trade,
97 00:18:14,520 --> 00:18:25,860 dismissing the level of risk. That's what gamblers do. I'm not trying to teach gambling. So when you practice them on your demo account, keep that in mind.
98 00:18:25,890 --> 00:18:36,150 That way you're not trying to overextend yourself. the sell side below these lows in here after hit the fairway get here and then one more time into it.
99 00:18:36,690 --> 00:18:50,820 While the opening price it breaks lower and aggressively runs below here. So no bad little running. Scoop back up to a five minute chart. Okay, and we're gonna
100 00:18:50,820 --> 00:19:03,270 go look at the afternoon session. Here is 135. And I remember I dated at around 130. That's when I like to go back in. Now I've taken trades earlier than that,
101 00:19:03,270 --> 00:19:13,800 but I'd like to see 130 after 130 the lunch hour has been smoothed out and then there's usually some kind of a retracement higher when it's bearish or
102 00:19:13,800 --> 00:19:24,360 retracement lower when it's bullish. And you're seeing that here. The imbalance, relative equal highs. It runs up into that right there. That's an area you can
103 00:19:24,360 --> 00:19:37,110 get short on. Market delivers a run lower. Here's another little fear of a gap in there. It runs up into that. That's a short aiming for what that line here.
104 00:19:37,320 --> 00:19:51,120 That's that relative equal low on the daily chart. So today, huge, huge opportunity Day marks of points that could have been made available. But I did
105 00:19:51,120 --> 00:20:03,330 something this morning. showing everyone kind of like what reading the tape. Examples will be like when I'm doing In the last session, I did some executions
106 00:20:03,330 --> 00:20:17,460 just to prove visibility to prove I was expecting a certain run. And I believe I was on NASDAQ. Yeah, I was in the NASDAQ. So let's go over to NASDAQ.
107 00:20:22,770 --> 00:20:28,800 Okay, that's in here. So we're going to zoom in here on this bit of business
108 00:20:45,420 --> 00:21:03,120 all right. And here is what I had in mind. When I was looking at the chart, I woke up this morning. Wife is out of town with my daughter. So I woke up and
109 00:21:03,780 --> 00:21:11,160 just because, you know, creature habit, your spouse next to you. So I had insomnia. So I sat up, and I was looking at the chart and said, Well, you know
110 00:21:11,160 --> 00:21:23,730 what? I see. Well, let me ask you what you see before I do it. Okay. What gave me the backdrop for all this in here, which I'll explain in detail in a moment.
111 00:21:23,730 --> 00:21:38,700 But what gave me the realization that this is likely to turn here and go lower? Study the entire fractal that's been shown, okay? Pause the video. Some of you
112 00:21:38,700 --> 00:21:50,580 just refused, I'm never gonna do it, I see seeds up asking me to do it. Alright, so we had this high here, we ran above it. And then we had the market shift. So
113 00:21:50,610 --> 00:22:03,000 buy stops, taken, breakout artists taken in on the market long, and then relative equal lows broken. So we have a shift in market structure on a five
114 00:22:03,000 --> 00:22:11,640 minute chart. In a time when it's bearish. We're looking for those relative equal lows to be tagged on the s&p and this is not the s&p, I understand that.
115 00:22:11,940 --> 00:22:22,530 But the expectation is we want to see these two indices go down on the daily chart. So heaviness should be the you know, the the protocol going into our
116 00:22:22,560 --> 00:22:37,800 trading day. In here, we have what? Displacement below these lows, so there's a lot of energy there. So right above that we have fair Vega over there's one
117 00:22:37,800 --> 00:22:51,150 right here, too, right? What did I teach you? This is where you do your entry. ICT you didn't enter here, right? I wasn't looking at the chart yet, I'll get to
118 00:22:51,150 --> 00:23:04,200 that. He said, My mind can read my mind, this fair value got here, we expect that to step up into it. So our stock has to at least be in a position where it
119 00:23:04,200 --> 00:23:17,460 can weather that. So what does that mean? That means that you have to either have deep pockets and allow for your stop loss to be inside this here. Or you
120 00:23:17,460 --> 00:23:30,810 use the micros which is fine. Don't do it on micro man, I'm gonna be in here. $20 per point. Okay. But you have to have an account that will allow for that if
121 00:23:30,810 --> 00:23:42,360 you don't have that didn't trade the micro. But I don't want to do that. Okay. Gamble. But not because I taught you to do that. So here is the order flow
122 00:23:42,360 --> 00:23:53,250 inside of that fear. But you got here, again, a little bit of extra runs above, into that fear of a gap there. And I'll put another rectangle here. So you can
123 00:23:53,250 --> 00:24:03,210 get a visual representation of what I mean. I mean, you can clearly see it, obviously, but I want you to just see it by contrast. So this is the rules. This
124 00:24:03,210 --> 00:24:12,540 is why I've been teaching it. Okay. If there is only one fair value gap, then just put your entry there and you don't expect it to go up into any deeper
125 00:24:12,540 --> 00:24:22,350 retracement. But because it has another one here, expected to stab up into that. Now I know some of you in here want to be in ICT junior, and you want to be in
126 00:24:22,350 --> 00:24:29,850 there on the highest candle when you're selling you want to be on the lowest candle when you're buying and I understand. But this isn't always going to
127 00:24:29,850 --> 00:24:40,260 happen. So if you're really only trying to aim for that you're going to miss news. And if it moves like it did today, that's it's a heartbreaker, because it
128 00:24:40,260 --> 00:24:48,690 moved a lot. And if you weren't positioned in it, and you spent the rest of the day kicking yourself about being greedy about trying to get that instead of
129 00:24:48,690 --> 00:24:57,330 where I've already taught you you'll probably miss it the other moves that take place later in the afternoon and you get nothing for there. Alright, so anyway,
130 00:24:58,050 --> 00:25:08,790 so we had a shift in market structure we move on into fair value guy here, we have a break lower fair value gap here. Relative equal lows, now look real
131 00:25:08,790 --> 00:25:20,820 close, folks. Okay, relative equal lows, a high being taken here, we break down these two candles move right below here. That's the same thing as these two
132 00:25:20,820 --> 00:25:31,950 candles here being broken with this move here, it's a fractal. This whole move here is the same thing here, just smaller. And it creates the same thing, a fair
133 00:25:31,950 --> 00:25:41,250 value got here, the market trades up into it, the body's kind of, you know, respecting that low area moves a little bit above it, that's fine. But then
134 00:25:41,520 --> 00:25:45,330 breaks aggressively lower, does it take out the low yet new
135 00:25:47,730 --> 00:26:00,570 retraces up in now I have two. Okay, not one, I have two narratives in play this one here, where we have a shift in market structure there. So this is a long
136 00:26:00,570 --> 00:26:15,270 term high. Here, we have another break lower when imbalance. So it's me term high. This is a bigger one than that one, right. So this is a long term high
137 00:26:16,200 --> 00:26:25,170 intermediate term high. By definition. They're both intermediate term highs because they have imbalances. But this one is lower than this one. And this over
138 00:26:25,170 --> 00:26:36,720 here is lower than that one. So this is a turning point making this by the heirarchy have swing points in market structure. This is a long term high in
139 00:26:36,720 --> 00:26:48,390 meter intermediate term because of the imbalance by how they nest together for market structure. Long term, intermediate term. Now when this is retracing up,
140 00:26:48,390 --> 00:26:57,990 this is going to be a short term high inside of a market structure that is really predisposed to go lower. Because we have long term and intermediate term
141 00:26:58,140 --> 00:27:13,080 above me. This should respect the underlying order flow and go lower. And I'm looking for that lower price that's below here, their cell stops resting below
142 00:27:13,080 --> 00:27:25,260 that. So as it retraces back up into this up close candle, what is this up close candle to be a shorter block. That's not what you've been teaching us mike on
143 00:27:25,260 --> 00:27:36,390 his mouth, right? I didn't say that's what this was. I'm telling you how to read the tape. Okay, but I do teach order blocks on the channel. So we're gonna go
144 00:27:36,390 --> 00:27:56,760 into this right here. So inside this shaded area, this is what I'm going to be executing in about colleran. Okay, it's good enough, it may not be your choice,
145 00:27:56,760 --> 00:28:01,620 but it's mine now. Alright, so we're gonna drop into a one minute chart
146 00:28:10,920 --> 00:28:20,250 every time I do this, I always imagine somebody that has a little bit better understanding how to work with the TradingView platform, they probably have a
147 00:28:20,250 --> 00:28:35,940 whole lot easier, quicker way of getting to where I'm trying to get to. Sorry. Alright, so we're inside of that blue shaded area on the finance chart. I'm also
148 00:28:35,940 --> 00:28:46,050 inside of this green candle here. That's a bullish order block. So what I'm doing is now I'm going to calibrate, which just simply means I'm going to go
149 00:28:46,050 --> 00:28:58,980 down in with a top down analysis approach, refine that order block that was on a five minute down to this one. So the market retrace back up into here into that
150 00:28:58,980 --> 00:29:07,530 order block, and I'm I'm trying to aim once it hits the midpoint of it. I want to get in around that time. Okay, so I'm entering there on that candle. And then
151 00:29:07,530 --> 00:29:19,440 I'm holding in all this and it drops back down. Now some of you might look at this and say, Oh, but this is that order block fair value gap here. And what
152 00:29:19,440 --> 00:29:27,210 happens if it rallies what it does a little bit, but what's it subordinate to? All the things I aligned over here and on the five minute chart over here with a
153 00:29:27,210 --> 00:29:39,840 higher swing high, so the market structure is bearish? I'm not looking at this setup. This is why I'm telling you. I tell them all the time. Okay. Is me
154 00:29:39,840 --> 00:29:51,750 teaching my order block theory me teaching my fair value gap concept? Is it going to become ineffective? No. Because, number one, it takes a lot of
155 00:29:51,750 --> 00:30:00,210 discipline. You have to be absolutely organized. You have to know what you're doing. And that's why a lot of people just teach it from hindsight. You cuz they
156 00:30:00,210 --> 00:30:10,470 can't, they can't really do it. So you can sound real smart. You can sound real educated, and you know, institutional quote unquote. But if they can't do it,
157 00:30:10,500 --> 00:30:22,470 it's useless. So if I'm showing you these things, and I'm telling you also look around majority of the people that parrot what I teach, that means they're
158 00:30:22,470 --> 00:30:33,060 mimicking my saying What does I already said like an echo, but they're really not doing it, they're not doing it like I'm able to do with it. That should be
159 00:30:33,060 --> 00:30:49,500 your comfort that people by far and large, humans are lazy creatures, okay, they're lazy. And they're not going to be predominantly role based, disciplined,
160 00:30:49,860 --> 00:30:59,850 responsible, they're going to be lazy, and they're not going to do what's supposed to be done. So it won't change anything. Okay? It won't make these
161 00:30:59,850 --> 00:31:10,920 things inferior, it won't change their superiority, it will not make them ineffective, they will remain constant. Now, the algorithm, I don't care how
162 00:31:10,920 --> 00:31:20,790 many people learn from this YouTube channel, okay? I don't care how many people rip me off and try to rebrand and change the name of everything I've taught. All
163 00:31:20,790 --> 00:31:31,440 that saturation will not change. Because what I just said, the algorithm isn't gonna change. There's new suckers coming in all the time. PT Barnum said it
164 00:31:31,890 --> 00:31:42,870 really, really accurately, there's a sucker born every second. So that you're never going to run out of liquidity, somebody's born. So Mike is old enough to
165 00:31:42,870 --> 00:31:51,930 start speculating and trading, boom, there in the marketplace. And that liquidity will just add to the liquidity that will be on the other side of your
166 00:31:51,930 --> 00:32:00,840 trade. So there's no reason for you to be worrying about whether or not this is going to be in effect. I've been teaching this for a long time. Okay, privately.
167 00:32:01,380 --> 00:32:12,540 And listen, if I honestly believed in my heart of hearts that this would fail and stopped working, if I taught it, I would not teach it. I wouldn't, I would
168 00:32:12,540 --> 00:32:23,490 have never even mentioned it. And I'm being honest. So take heart, there's no reason for you to be upset about or worried or concerned, it will remain as long
169 00:32:23,490 --> 00:32:35,460 as the markets are trading, these elements will be in these markets. There it is. Alright, so the market rallies up, it's that's above the order block here.
170 00:32:35,490 --> 00:32:45,030 But it's just the wick to that the bulk of the volume in the bodies of the candles are inside that order block. Then the market does what it breaks and
171 00:32:45,030 --> 00:32:55,530 shows displacement here. Remember what I said about this pattern here? Relative equal lows, it breaks down and goes back to a fear of a gap. Here it is, again,
172 00:32:55,710 --> 00:33:07,980 relative equal lows, displacement, fair value gap was it do go right back up into what the fear Vega end and look closely the bottom of the bearish order
173 00:33:07,980 --> 00:33:08,340 block.
174 00:33:10,619 --> 00:33:19,919 Bam, it's it. You watch me looking at the chart. It's there. And then I'm entering on that candle. I'm not entering because I wasn't really looking at the
175 00:33:19,919 --> 00:33:27,959 screen at the second one I was. I was holding the phone this morning. But I wasn't looking at it here because this is a one minute chart and I was doing
176 00:33:27,959 --> 00:33:36,509 something else. Now I look back at the screen I seen it went up there and hate it. And after it filled it, then I put my market order go in and sell to I sold
177 00:33:36,509 --> 00:33:47,849 three contracts here. I sold two contracts here. And then I entered again here after did what retreated back up into this bearish order block here. So it moved
178 00:33:47,849 --> 00:34:08,939 down, came back up in and I'm selling short here that okay, what's the low on that candle? Right here. Look at this figure right there. So 13,334 and three
179 00:34:08,939 --> 00:34:21,179 quarters. And my entry as it ran up into it on this candle. The entry was 13,003 35. So it was only a quarter of a point above into that candle. That was
180 00:34:21,179 --> 00:34:32,549 my entry. It had a little bit of heat here. So on that entry, it was one contract here. So notice what I'm doing. I'm entering it the largest portion of
181 00:34:33,389 --> 00:34:45,689 the setup or the end of the framework for the trade. I'm going in with a maximum position size, first three contracts there. Then selling to here. And then I'm
182 00:34:45,689 --> 00:34:57,059 adding the last one here. That logical, precise areas. It's not randomness. It's not willy nilly. It's this not flipping a coin. It's not guessing there's logic
183 00:34:57,059 --> 00:35:15,599 here. Okay. So When the market has this heat on it here, the highest value that candle goes to is 13,339 and a half. So four and a half handles, that's the heat
184 00:35:15,599 --> 00:35:25,829 I took on that there, but only on one contract. Okay, because I have two contracts that I'm short from back here. And I have three contracts short from
185 00:35:25,859 --> 00:35:36,749 over here. So I have all this built in equity with five contracts. So the one contract here that only has four and a half points of heat on it, or drawdown,
186 00:35:37,049 --> 00:35:44,909 it's insignificant, I don't even worry about it, I'm not thinking about it. And that's why, when I pyramid and I build in large positions, I'm starting with my
187 00:35:44,909 --> 00:35:54,059 biggest position first, and then I'm going smaller, and smaller until I can't do any smaller. I don't ever do the final one contract. And one morning, one
188 00:35:54,059 --> 00:36:06,569 morning, one more, I don't do that. That's the I don't need to do that. So once I had that position established, then I submitted to the idea of it going down
189 00:36:06,569 --> 00:36:16,889 to that level that I drew out on the I forgot what timeframe was now. But we'll draw back out in a second to here is the exit here, I bought all six back at
190 00:36:16,889 --> 00:36:29,489 13,002 85. Even, I wanted to be just above the level, because it might do these little shallow runs. And it might not give me my fill. It does a little bit of
191 00:36:29,489 --> 00:36:39,749 that in here. And then finally, digs a little bit deeper. I just sort of had to wait a little bit longer to get the fill but happened right there. And I post on
192 00:36:39,749 --> 00:36:51,689 the Community tab when I happen boom, showed you those screenshots. There it is. Now that's reading the tape that is reading the market that's getting
193 00:36:57,900 --> 00:37:11,580 familiar with order flow. And for those of you that are students of mine for a longer time than just recently, you recognize this as a market maker sell model.
194 00:37:12,450 --> 00:37:24,570 So I was selling in an area where distribution would take place. So all this stuff is there. It's logic. I'm gonna say this point, because I know there's
195 00:37:24,570 --> 00:37:33,420 people out there going through my trade statements, and you're looking for precision. There's a lot of things that I'm doing in that statement in those
196 00:37:33,420 --> 00:37:43,620 statements that have nothing to do with trying to be precise. You guys wanted to see an account go up, I provided that I also provided a way for my students that
197 00:37:43,620 --> 00:37:53,880 were asking me that I'm obligated to, to show them where if they went into a period of drawdown, how they fix it, and also had lots of questions like and I
198 00:37:53,880 --> 00:38:08,250 did this morning with me see, where was the entry? The second one? I did two contracts right there. Okay. When I did that one, it was after I did the or was
199 00:38:08,250 --> 00:38:17,940 it the printer back and then it made a difference. The one where I had the fair value gap. I said I didn't see it when it was forming and filling it in. After
200 00:38:17,940 --> 00:38:28,320 it filled it, it was so close to it. So as a close proximity entry, a lot of the trades in that TD Ameritrade account, I'm using close proximity entries. And I'm
201 00:38:28,320 --> 00:38:40,740 also using things that you don't know about, okay. I'm also proving to some of my students where if they got into a marketplace, and they take a trade, and
202 00:38:40,860 --> 00:38:49,140 they don't get stopped out, but they sit through drawdown, how the weather that you are not privy to the conversations I'm having with these students. So don't
203 00:38:49,140 --> 00:38:57,600 assume that you're looking at their statements thinking, Oh, this is this is all he's got. That's not all that I'm actually doing something else. I hear somebody
204 00:38:57,600 --> 00:39:07,890 out there talking saying they can do things and I can't trade. And I'm baiting them. I want them to step out, but they won't. Okay. I want them to think that
205 00:39:07,890 --> 00:39:17,160 that's all I could do. And even then they wouldn't budge because he knows I can do better than that. This is this is not even the best. There's other things you
206 00:39:17,160 --> 00:39:27,120 can do with my concepts. Rick from this YouTube channel. That's more precise than this. I know it sounds hard to believe, but it is what it is. I don't want
207 00:39:27,120 --> 00:39:37,200 those statements that are sharing. Because like everything else of mine, people take my stuff, remove my name, rebrand it. And they say you know, this is my
208 00:39:37,200 --> 00:39:49,230 stuff isn't my creation, this is whatever and they sell in a scam. If I give statements that have real time in sales with Live account, and I'm producing
209 00:39:49,260 --> 00:39:58,740 like you see here, is it hard to imagine that someone taking that and showing it to people and saying that's their results and scamming them? Think about it
210 00:39:58,740 --> 00:40:12,570 folks. Everything I do, there's a rhyme and reason for it. I'm not reacting to someone else's negative discord. So today is the last day of the business here.
211 00:40:13,260 --> 00:40:26,520 And we're done. So I did all this overnight, going into pre New York session. And then we had all this back and forth. They pumped it up over the overnight
212 00:40:26,730 --> 00:40:40,260 high here. And then we go back into that discussion we had earlier. So they ran a high here with this run up at 930. That's when we expect that volatility to
213 00:40:40,260 --> 00:40:51,690 come in. And that's right here. Okay, so a little bit of whipsaw on here, boom. Rallies. In my live trading account. I took a long in here, and I got out at I
214 00:40:51,690 --> 00:41:03,480 think it was 13 409. I wanted 13 for 25. But I was a little apprehensive thinking that they may not step through it. They were getting real close to this
215 00:41:03,720 --> 00:41:13,350 hung around. And I got out just a little bit prematurely. And that was it. And I didn't take anything until later on the afternoon. So small little scalp in here
216 00:41:14,010 --> 00:41:25,980 made about 740 bucks. I think it was and that was it. My attention diverted because, Mr. Mom right now, not my wife, not with me. And two children I have
217 00:41:26,070 --> 00:41:27,300 that live with us still,
218 00:41:27,660 --> 00:41:37,860 I'm in charge of homeschooling them still running this business. And I have two boxers that are highly demanding of my time. And I know some of you are saying
219 00:41:37,860 --> 00:41:45,210 get to the point get to the point. The point is, is I'm a real person. Okay, so I'm not able to be in every single move, because I'm doing other things, and I
220 00:41:45,210 --> 00:41:54,690 have a life. I know, it seems like I probably don't. But I really do and isn't triggered it is it is. And it's as simple as it is. I love my life. And I like
221 00:41:54,690 --> 00:42:03,690 doing the things I like doing in my life. But the markets are not everything in my life. But hopefully, you got something out of this. And you can see how we
222 00:42:03,690 --> 00:42:24,990 did again, draw lower on NASDAQ. And I think that will be it for this one. And go back to E Mini s&p. And you can see your relationship there. So both of them
223 00:42:24,990 --> 00:42:36,450 moving in concert, both of them moving in tandem. But look closer. Okay, this is why I went back to the E Mini s&p, why'd you do that? ICT? Do you see
224 00:42:43,560 --> 00:43:01,260 that look at the high here at two o'clock in the morning, 230 in the morning, today, Friday, April 29 2020. The rally here after 830. It creates the high but
225 00:43:01,260 --> 00:43:07,620 it's lower than high to 230 overnight. Now go back to NASDAQ.
226 00:43:12,690 --> 00:43:33,120 See that 235 And we have a higher run on NASDAQ. So this is what I teach is SMT. Okay. It's showing it's showing a willingness to crack the correlation between
227 00:43:33,600 --> 00:43:47,430 like markets. These are closely correlated assets, the s&p 500 stocks composite. And in NASDAQ 100, stocks composite, they generally move together in tandem, not
228 00:43:47,460 --> 00:44:02,160 all the time. So if we're bearish and we're expecting lower prices, and we see this but the s&p doesn't do it. That's showing you that this is a stock run. And
229 00:44:02,160 --> 00:44:17,100 it shows that s&p is really weak. So this gives you confirmation without using an indicator, okay, without having anything on the chart. It shows you while
230 00:44:17,280 --> 00:44:27,180 you're still here, when you have the NASDAQ up like this, you can do a compare and contrast by hitting this little tab here. And we're going to add this E Mini
231 00:44:27,180 --> 00:44:39,390 s&p Neupane. So plotted below and then when you're comparing highs, you want to go over here, go to that little gear. Price source you want to change it to high
232 00:44:41,640 --> 00:45:00,000 and you can see high to high, high to high, higher here. Lower there. So looks like it looks like a divergence. You see that with an indicator but it's not
233 00:45:00,000 --> 00:45:09,540 indicator its price. So I use intermarket relationships and correlation and correlation used properly. There's a lot of people out there talking about
234 00:45:09,540 --> 00:45:18,240 correlation, they have no idea what you're talking about. But if you look at the idea of this relationship here, it gives you like an x ray view of real
235 00:45:18,240 --> 00:45:30,390 accumulation and distribution. This is distribution, because it doesn't see the same rally higher that the NASDAQ did. Okay. There was two other things on my
236 00:45:30,510 --> 00:45:41,790 agenda here. I mentioned to one of the young ladies, I would show the FIB, this is nothing else. So you guys are all welcome to turn the video off. Because this
237 00:45:41,790 --> 00:45:52,230 is not going to be teaching really anything. It's for those individuals that just want to calibrate their Fibonacci and also some of the points that I add to
238 00:45:52,230 --> 00:46:03,690 the chart, and I'll show you what that means here. Price note at someone asking how do I put those little annotations on, just anchor to the how you want, drag
239 00:46:03,690 --> 00:46:12,030 it over, if you hold down the shift button, it'll make it level. You can also do that with your trim lines. So if you want to add here, if you start dragging it,
240 00:46:12,060 --> 00:46:21,840 if you put the shift button, it'll automatically target and keep it straight. And so many of my students are so helpful, because it used to drive me crazy. So
241 00:46:21,870 --> 00:46:32,460 anyway, I know I told you, I warned you folks, it's not going to be on burners. It's simple stuff for people that are new. Alright, the last bit of business is
242 00:46:32,460 --> 00:46:47,490 the Fibonacci. Okay, so I'm going to anchor your fib to two price points. Get this off here. Alright, so once you have it on your chart, highlight it, and
243 00:46:47,490 --> 00:46:56,940 then go over to the little gear, and go to style. And style, these are the settings, okay, all you do is go in, click the little box here, type in the
244 00:46:56,940 --> 00:47:10,350 numbers you see just like I have here. Now, if you want to see projections on how far down or up the moves will likely go. This is where equilibrium. So if
245 00:47:10,350 --> 00:47:20,940 you want to see discount the premium, that's what the point five level is, it's 50%. And you can see, by having this on here, it starts doing standard
246 00:47:20,940 --> 00:47:37,890 deviations. Okay. And if you want to calibrate it to the daily range. Here, it'll give you a pretty good idea of where your low should form. Now this was a
247 00:47:37,890 --> 00:47:51,240 little bit excited because it went below an important low. But that's enough for government work. If you want to show the optimal trade entry levels, and you're
248 00:47:51,240 --> 00:47:51,960 pulling the filler
249 00:47:58,020 --> 00:48:08,940 I'm just taking this off so that way your attention rate on levels that make optimal trade entry either the 62 and the 79. Okay, and you can change these,
250 00:48:09,600 --> 00:48:20,010 make them a different color just stand out. I don't like to do that. But you can see it here. So if we were looking at it like this
251 00:48:27,900 --> 00:48:42,810 here's the optimal trade entry levels, and it trades up into it here. Zoom in. Can you zoom in it ain't young like you are. Alright, so here's the high to the
252 00:48:42,810 --> 00:48:52,350 low optimal trade entry and trades up into here and into the fair value gap. Bam. That's what makes it optimal. So there's your entry here and you can start
253 00:48:52,380 --> 00:48:53,370 on back in
254 00:48:58,560 --> 00:49:19,110 and we can do the projections here. Again, go into it now. Move this out of the way. Do one standard deviation, two standard deviation, one the higher standard
255 00:49:19,110 --> 00:49:35,640 deviation and I think that's enough for this one. So the range from the high and the low. You can get that for your discount the premium but for optimal trade
256 00:49:35,640 --> 00:49:48,270 entry. I like to use the body's lowest open or close in the swings and you can see how nice that gets right up almost into the 70% Trace and obviously that I'm
257 00:49:48,270 --> 00:49:59,160 gonna take this fear agar mine off. You see the hub here I cleaned it up with the book. So if you don't know how to use a Fibonacci you have any idea how many
258 00:49:59,160 --> 00:50:06,840 people will say that? No Every years, they actually make videos about me on YouTube saying that stuff, I don't understand what he's doing. It's the bulk of
259 00:50:06,840 --> 00:50:16,110 the volume. And using the lowest opening on this candle here inside this swing, and inside this swing, I'm using the highest open or close. And that's what's
260 00:50:16,110 --> 00:50:27,090 been plotted on optimal trade entries here. I look at this as stop running, just like this is I want to get to the heart of the matter. Okay, I'm getting to the
261 00:50:27,090 --> 00:50:38,400 point. This is extra for the people that didn't want to stay. So the optimal trade entry level here. Now if we start looking at the projections down here, we
262 00:50:38,400 --> 00:50:48,810 have one standard deviation down here. Project that over here, boom, see that? hits it and then we have a nice retracement. So this is a good area to take
263 00:50:48,810 --> 00:50:57,600 profits here and it's also below the low so how far can I go below this low ICT mark? There's a standard deviation right there. And it does so handsomely. And
264 00:50:57,600 --> 00:51:05,280 we have a nice little retracement then it gets wild right before the opening. Okay, but that's the things I promised that would be at the end of this video
265 00:51:05,310 --> 00:51:16,020 that was supposed to be on Thursday and I appreciate you guys being you know, patient not going all crazy and pitchfork and torches. You said you were gonna
266 00:51:16,020 --> 00:51:25,830 do a video on Thursday. Real Life kick them folks. All right. And I think that my friends is going to be it and I will touch base with you Lord willing on
267 00:51:26,340 --> 00:51:31,470 Tuesday of next week. Until I'll talk to you then. Enjoy your weekend and be safe