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ICT YT - 2022-05-11 - ICT Mentorship 2022 Episode 26 - Example Of Tape Reading Practice.srt

Last modified by Drunk Monkey on 2022-05-14 10:05
1 00:00:05,370 --> 00:00:14,040 ICT: Alright, so we're gonna be doing a quick little ditty on institutional order flow. And are we trading against daily bias
2 00:00:19,380 --> 00:00:31,830 Kang long here, and it's on basis of the cell stops or cell side liquidity being taken, we've already traded into a fair value gap around that 4000 level. And
3 00:00:31,830 --> 00:00:44,940 I'm trading with the idea that it could run up here and take out the buy stops above the high the day, it doesn't need to do that to be profitable. So my drawn
4 00:00:44,940 --> 00:00:51,510 liquidity is here. And
5 00:00:57,810 --> 00:01:08,790 noting the buy side liquidity will take in clear, profitable shorts
6 00:01:15,480 --> 00:01:29,040 so this is kind of like the, the idea, okay, the draw on liquidity. Now, it doesn't need to trade here to be profitable. That's my best case scenario. So
7 00:01:29,040 --> 00:01:42,090 what I want to do now is draw the buy side and sell side liquidity pools. And I'll show you the framework for the logic of why I'm entering where I'm entering
8 00:01:42,090 --> 00:01:54,030 it, and I want you to take a look at the chart first and see if you understand what I'm capitalizing on. Pause the video
9 00:02:00,269 --> 00:02:16,319 All right. This year is the sell side liquidity. So the Mark has dropped below, there's relative equal lows, I bought those sell stops. So suicide is taken.
10 00:02:20,279 --> 00:02:30,629 Okay, so you can see that here. And now what I'm going to target, even though I think it could go, but it may not really get there, it can go to 4051 and take
11 00:02:30,629 --> 00:02:42,239 out the high the day. But let's say I'm wrong. What am I going to aim for, this is where I'm gonna take the bulk of my position off at and I gotta make this
12 00:02:43,259 --> 00:02:44,879 show on top of the line
13 00:02:55,860 --> 00:03:08,580 okay all right, so I'm reaching for that. Now the bulk of my position, I'm gonna try to pyramid and build this vision a little bit bigger than just the four
14 00:03:08,850 --> 00:03:26,730 contracts, but we'll see what we get. Now try not to worry about that profit and loss. That's, that's a distraction. Pay attention to the price. So we dipped
15 00:03:26,730 --> 00:03:38,820 inside that fair value gap just to the left of us. And we went below to take out the wealth of equal lows as noted here for the Southside liquidity being taken.
16 00:03:40,290 --> 00:03:52,770 So I'm looking for expansion to the upside, retail sees that as a bear flag. Okay, so they're thinking lower prices. I'm not even if I'm wrong about it not
17 00:03:52,770 --> 00:04:07,410 going to 4051 I'm confident that we're going to go up into the buyside liquidity that's needed in blue. Okay, so far price looks nice. It's respecting the unbind
18 00:04:07,410 --> 00:04:09,060 narrative acting upon
19 00:04:14,700 --> 00:04:25,380 now, I want you to also monitor how I manage my stop loss even though I'm trading against the daily bias the fact that we traded down three times intraday
20 00:04:27,000 --> 00:04:42,120 and took out yesterday's low by doing so that lack of follow through kind of like bolsters and let's do two more here trading on to the order block
21 00:04:47,640 --> 00:04:57,630 Okay, so now have six contracts long and I'll move stuff up just a little bit. Underneath that low rate there should not trade back down into that. Does I'm
22 00:04:57,630 --> 00:05:07,560 wrong and that's fine. Why do I feel confident about placing my stock posted? Because if you look where I have my stock, it's basically inside of the lower
23 00:05:07,560 --> 00:05:17,010 end of the fair value gap and the old short term high around 930. So I have market structure supporting the idea. And we've already taken sellside liquidity
24 00:05:17,010 --> 00:05:28,890 out more back inside the range between where my stop loss order is in the short term Hi, I have noted for buyside liquidity. So buy sell liquidity is the next
25 00:05:28,890 --> 00:05:40,170 draw on liquidity. I'll take for the contracts off. So I'll annotate what we're doing here. We're just bumping the order block. There strictness, nine out here,
26 00:05:41,820 --> 00:05:53,100 you can hold down Shift, when you're dragging your trim lines and treating you it'll automatically straighten them out. And that is an order work. Bullish
27 00:05:53,100 --> 00:06:11,010 order block is what I'm annotating here. As you can see, this is all being done. As it happens. I can chew bubble gum and walk at the same time. And that's what
28 00:06:11,010 --> 00:06:22,050 I'm looking for. I'm looking for that type of movement. Certainly we understand what I'm internalizing, but my scene what's likely to pay it out. It's what I
29 00:06:22,050 --> 00:06:33,150 want. So now I'm going to study see if price does in fact, deliver with that premise in mind. Again, if I'm lucky, it could expand up into that 4051 and a
30 00:06:33,150 --> 00:06:42,540 quarter. But I don't need it too because the bulk of the position which is now six contracts, I'm going to take four off above that buyside liquidity, should I
31 00:06:42,540 --> 00:06:52,740 get the opportunity to do so and I'll do it on the basis of a market order. Alright, so far, we're getting some response off that order block level I've
32 00:06:52,740 --> 00:06:53,430 annotated
33 00:06:58,980 --> 00:07:12,060 blue CD is flaring. I like things the way I like them folks. Alright, nice little caffeine bar there. Caffeine bars, something I named Big Green candles.
34 00:07:14,160 --> 00:07:17,790 If I'm bored, I want to see that I'm bearish and I see it I don't like it
35 00:07:29,850 --> 00:07:43,680 Okay, so I'm just being a little facetious here you don't see that type of stuff called before happens that precise. But it's okay, I'm gonna give you some more
36 00:07:43,680 --> 00:07:44,850 evidence here today
37 00:07:51,630 --> 00:08:00,720 now this is what you want to do also, if you're practicing reading order flow tape reading you don't have to necessarily put a demo account position on I'm
38 00:08:00,720 --> 00:08:14,490 dealing with just simply because a lot of people like to see it okay, this is me just making sure you understand that I see this before it happens not speaking
39 00:08:14,490 --> 00:08:28,770 in waffle ease where it's hard to tell what I'm seeing what I'm expecting it's very very specific. Nothing ambiguous is being hinted at in here. Okay, so
40 00:08:28,770 --> 00:08:42,600 sellside has been taken this is now being dimmed. So that my focus is on the the levels that are more pronounced in color now see there's two down close candles,
41 00:08:43,350 --> 00:08:56,610 the higher candle though the two withdrawal in order block on it can drop down into that pick up momentum from there and then the algorithm will likely reprice
42 00:08:57,930 --> 00:09:11,820 higher to the bicep liquidity or rennet 4036 level. So I'm allowing for and preparing myself should it trade down into that level. It might just touch the
43 00:09:11,820 --> 00:09:23,640 higher wick have the two down close candles I'm anchoring to I'm using the upper most opening price as come like the level I'm looking for. But the small little
44 00:09:23,640 --> 00:09:34,140 wick high it might just touch that and be enough or may not even touch it at all. But when you're watching order flow mean make this a little bit more
45 00:09:34,140 --> 00:09:51,960 thicker so you can see it. They will track what price is doing. Now this is one of those instances where you're looking for price to kind of like drive higher.
46 00:09:52,050 --> 00:10:02,790 You want to do it in like big candles, speed delivery right to what you're looking for traders You're now trying to go short because they looked at that
47 00:10:02,790 --> 00:10:11,250 imbalance that a 30 day quick sudden drop, the market has come back and rebalanced that. Now it's starting to drift lower people that follow imbalances
48 00:10:11,250 --> 00:10:21,240 and things like that because it's gotten real popular lately. That idea they're trying to sell short on, I'm going against that and I'm targeting them. Okay, so
49 00:10:21,240 --> 00:10:38,130 that's a, that's a lie right there. So over black right there, I would adjust that line. But I've already outlined what I'm seeing here, it's basically touch
50 00:10:38,130 --> 00:10:50,610 the little wick. So if I wanted to add one more, which I guess I could, I could buy one here just to prove the point but it is what it is assume that this is
51 00:10:50,610 --> 00:11:05,550 all we're going to build on. I want to see it rally higher from here. Notice I'm not in a hurry to rush my stop loss up very nice price delivery there. So think
52 00:11:05,550 --> 00:11:19,890 about what's being shown here. The down close candles are supporting price. We're seeing expansion and where is the bullseye get returned 50 My eyes are not
53 00:11:19,890 --> 00:11:34,740 what they used to be folks. I'm sure if it was a rattlesnake I'd be bit by now there is I should have checked my most recent ones at the top. Alright, so we'll
54 00:11:34,740 --> 00:11:37,860 put that right here. That's our bull's eye okay
55 00:11:43,860 --> 00:11:53,970 and I can bring my stop loss up to break even excellent get that a little bit higher we can see the profit and loss or use guys that like to see those numbers
56 00:11:53,970 --> 00:12:04,950 flashing. Right so I'm gonna take four off when it runs above that high and then I'll consider moving my stop up and see if I can get lucky rest of the day I
57 00:12:04,950 --> 00:12:20,640 have things that take care of administrative things in the production so should we get this run up above I'm going to close for at market going to sit here
58 00:12:20,640 --> 00:12:33,120 waiting for it to deliver. Again, those order blocks were drawn in real time you saw it happen have outlined it gave you the logic and we'll see if we can get
59 00:12:33,480 --> 00:12:36,630 some magic there we go
60 00:12:43,590 --> 00:13:01,860 somewhere going to show you the executions here. And we can see the the business okay, and I'll leave it up to the market to decide whether or not you want to go
61 00:13:01,860 --> 00:13:11,430 over and take the 4051 and a quarter level it doesn't need to at this point of book to over five hypothetical $1,000 In this example here ready to go to flow
62 00:13:12,300 --> 00:13:38,220 and that will be it for this one, I believe and I'll just change this code here because now it's been fulfilled and my typical sarcastic ribbing gotta be me. So
63 00:13:38,250 --> 00:13:52,170 here is the final here's the buying for 4006 and a half and then buying this here. So the initial was buying the fair value gap sales ops, then the order
64 00:13:52,170 --> 00:14:05,940 block, then selling for above here and I moved the stop loss up and tripped me out right there on the final two. So hope you found this insightful. Until next
65 00:14:05,940 --> 00:14:07,770 time, be safe.